Specially designed schemes of work will provide practical examples of how to teach citizenship - which forms part of the national curriculum from this September.
Speaking to teachers and councillors today at a local government conference in London, Jacqui Smith said: 'I know that all schools won't have exactly the same needs when it comes to teaching citizenship.
The exchange of ideas on this subject will be the key to its success. This is why I have today allocated£350,000 of our£1.3m citizenship budget to enable schools to have as much flexibility as possible in their approach.
'Citizenship will become a statutory foundation subject from September 2002 and it is because the subject is so distinctive that I am allocating our funds in this fashion.'
She also highlighted the good work already carried out by councils like Manchester, Brighton and Hove and Redditch to involve young people and encouraged other councils to follow suit.
1. Jacqui Smith earlier this year announced that£200,000 of the£1m citizenship budget would be spent on pump-priming resources for citizenship groups. Today's announcement allocates money from the overall citizenship budget. On June 30 education and employment secretary David Blunkett announced an extra£300,000 for citizenship in schools.