She will warn that there are currently 1.25 million children in failing schools and say that the country must end school “selection by house price” and “wealth”. “For too long we have tolerated a system that contains an arbitrary rule preventing selective schools from being established – sacrificing children’s potential because of dogma and ideology,” Mrs May will say. “The truth is that we already have selection in our school system – and it’s selection by house price, selection by wealth. That is simply unfair.“That is why I am announcing an ambitious package of education reforms to ensure that every child has the chance to go to a good school.”Under the plans, new grammar schools will be forced to meet a series of strict conditions to ensure that poor pupils are not disadvantaged. Every school in England will be given the opportunity to become a grammar school, Theresa May is to announce as she sets out the biggest changes to the education system in decades.In the most revolutionary reform to education policy since the introduction of the national curriculum, Mrs May will announce a new generation of selective schools, reversing Tony Blair’s 1998 ban on grammars.She will insist that any school wishing to become a grammar – selecting pupils on the basis of academic achievement – must abide by quotas for children from low-income homes. Theresa May is to give the go-ahead for a new generation of grammarsCredit:Adrian Dennis/AFP The announcement paves the way for a return of grammar schoolsCredit:Bert Hardy /Getty Theresa May is also shifting policy on faith schools Grammar schools will be forced to meet a series of conditionsCredit:Rex Features Or they will be forced to build a “high quality, non-selective” free school or set up or sponsor a primary feeder school in a deprived area.It means that hundreds of new grammar schools could be built across England, rather than the 25 predicted as part of the reforms.Existing selective schools will also be able to expand as part of the plans. Downing Street believes this is the only way to ensure that the House of Lords does not block the legislation when it makes its way through Parliament.As well as allowing new selective schools, the Government will also force universities charging fees of more than £6,000 to open – or fund – a school, in what will be a significant change to higher education policy.Mrs May will add: “As well as allowing new selective schools we will bring forward a new requirement that means universities who want to charge higher fees will be required to establish a new school or sponsor an existing underperforming school.“This is about being unapologetic for our belief in social mobility and making this country a true meritocracy – a country that works for everyone.”In a major shift in policy, the cap on religious selection will be ended to allow a new generation of faith schools across the country. As part of the education package, Mrs May will also announce:New faith schools will be given permission to select pupils purely on the basis of their religious background Universities that want to raise fees will be required to found a new school or sponsor an underperforming institutionThere will be no “return to the past” of mass 11-plus tests to ensure that schools do not separate children into “winners and losers”Mrs May will use her first major domestic speech to unveil major reforms to the education system, vowing that the Government will no longer “sacrifice children’s potential because of dogma and ideology”. According to current rules, if a faith group wanted to set up a free school it could only give priority to applicants on the grounds of religion for 50 per cent of its places.Critics argue this has been a barrier to faith groups – particularly Catholics who might to open free schools, with fewer than a fifth of free schools currently having a link to a religious group, lower than the state sector average.A source said: “The admissions cap had the best of intentions but it has failed in its two key tests. It has failed to make minority faith schools more diverse, because parents of other religions and none do not send their children to those schools. “But it has prevented new Catholic schools from opening, which are more successful, more popular and more ethnically diverse than other types of state school. We’re going to change the rule, so we can allow new Catholic schools to open, while making faith schools of all kinds do more to make sure their pupils integrate with children of other backgrounds.” Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily Front Page newsletter and new audio briefings.