Shadow education secretary Stephen Twigg will today say that the Government's policies on education are "out of date and backward looking".
Mr Twigg will warn that if the Government introduces regional pay in public services, it could result in teachers in the "toughest schools in the toughest neighbourhoods" getting lower pay.
That would undermine the need to make teaching - as in Finland and South Korea - "an elite profession for top graduates".
Instead graduates should be offered financial rewards to take on those jobs, he will say, such as the debt write-off scheme.
Mr Twigg wants to pilot the project, perhaps even before the general election via Labour-run councils, but admits there is "a lot of work to do" to draw up detailed figures on how much debt would be covered or how many schools would be included.