Rulings are a warning to specialist schools

The mutual society, which owns 1,800 supermarkets and a bank among other businesses, is putting �350,000 towards seven schools' bids to become business and enterprise colleges.

It has promised an extra �20,000 a year to each over the following two years.

Specialist schools, under which �50,000 has to be raised before a bid for the new status can be made, are a flagship government education policy.

'Worthwhile'

But critics say they are divisive, as they get more taxpayers' money than comprehensives, dubbed "bog-standard" by the Prime Minister's official spokesman.

If the bid to become a specialist in a particular field - such as languages, maths and computing, sport or business and enterprise - is successful, schools get a one-off grant of �100,000.

They also receive an extra �126 per pupil for four years.

The Co-op will distribute its money through the Specialist Schools Trust, which will choose the successful candidates.

Co-op Group chairman Keith Darwin said: "By supporting schools that are specialising in business and enterprise we will be able to introduce the co-operative way of doing business to the entrepreneurs and managers of the future.

"We are in business not simply to make a profit but to do something worthwhile with the profits they make, and we believe young people will benefit from understanding the advantages of doing business in a democratic, honest and responsible way."

Schools with more than 500 pupils have to raise �50,000 in sponsorship as part of their bids.

Labour inherited the policy from the previous Conservative government.

Education Secretary Charles Clarke has lifted the cap on the number of schools that can become specialist.

He has also insisted they improve results at a faster rate than ordinary secondary schools.

However, the Commons Education Select Committee's declared there was not enough evidence to say that their specialist status was responsible.