Radical plans to base social workers in schools should be backed by government cash, ministers have been told.

Labour MP and former social worker Meg Munn has supported plans to move social workers out of council departments and into schools.

But she warned that the initiative needed additional funding in order to work.

"I would want to see it not just as being something that breaks down the professional barriers but something that breaks down the financial barriers as well," she told ePolitix.com.

Education secretary Charles Clarke announced the transfer of children and family social services from the Department of Health into the Department for Education and Skills as part of the reshuffle-prompted changes in Whitehall.

And Margaret Hodge was appointed as the first children's minister.

Munn, who was assistant director of children's services in York before being elected, described the move as "a very positive signal".

"And it gets away from the stigma of children in care; lots of families have problems from time to time," she said.

Munn said the decision would mean teachers would need to take a more prominent role in child protection."The other thing it will do is help teachers to have a more holistic view of children - to use a trendy phrase," she said.

"Things have moved on but I remember teachers would say 'I know we got a problem so we'll ring up the social worker' and when they put the phone down would say 'phew, done my bit'."

The Labour MP for Sheffield Heeley said action was needed to improve the education to children taken into care.

"The achievement levels of children in care are appalling. When you work with these kids and you know what kinds of things they are struggling with it comes as no surprise," she said.

"So I think that recognising that actually you've got to look at this if you're going to help children achieve is very helpful."

The appointment of Margaret Hodge, who was previously higher education minister, would send "a very, very positive message to social workers".

"There's certainly been a feeling among social workers - just because they're a small profession and they tend to get a bad press when things go wrong - is to really ensure they feel valued," added Munn.

The row over abolishing the Lord Chancellor's Department overshadowed a significant change in public policy, she said.

"It has been lost in the noise of the reshuffle and that's a shame. It is a significant move and it deserves to have more debate, more discussion about it," she concluded.