Headteachers will no longer be able to give children time off school in term time, unless there are exceptional circumstances. Until now, they could grant up to ten days leave for children to go on holiday with their families outside the usual school breaks.
The government says it is introducing the rules because poor attendance can damage a child's education. But the plans have been criticised by those who say it will affect the poorest families the most.
"Schools should only give permission for absence during term time in exceptional circumstances.
"Poor attendance at school can have a hugely damaging effect on a child's education. Children who attend school regularly are four times more likely to achieve five or more good GCSEs than those who are regularly absent.
"That's why we have given schools more power to tackle poor attendance. Schools can now intervene much earlier and we have increased the amount parents can be fined for the unauthorised absence of their child."
The MP for Blaydon, Dave Anderson, has said the penalties will affect poorer families, who cannot afford the prices in the school holidays. ITV News asked people on Gosforth High Street, in Newcastle, what they thought.