Home Secretary John Reid ordered paedophiles to be moved out of three hostels close to Midland schools.
Mr Reid has instructed the National Offender Management Service to implement "restricted admission" at 11 hostels close to schools across the country, including ones in Birmingham, Nuneaton in Warwickshire, and Stafford.
He is also considering giving parents access to information on paedophiles in their area.
In a statement, Mr Reid said: "I have instructed that no child sex offenders reside in accommodation directly adjacent to schools.
"I'm sending my Minister to America to discover the best way of ensuring the controlled release of information to the public.
"I start from the position that information should no longer remain the exclusive preserve of officialdom."
It was reported yesterday that the decision to move paedophiles out of hostels close to schools followed an investigation by the News of the World which found that 60 child abusers were in Governmentapproved centres near schools.
Mr Reid told the paper he was prepared to consider its demands for "Sarah's Law", giving parents the right to information about sex offenders in their area.
Home Office Minister Gerry Sutcliffe has been asked to visit America to look at the working of Megan's Law, on which Sarah's Law was based, the paper reported. Sarah Payne's mother, Sara Payne, said: "After six years of campaigning this is a tremendous breakthrough. I'm delighted." The 11 hostels that sex
offenders will no longer be allowed to reside at include Elliot House in Birmingham, McIntyre House in Nuneaton, and Staitheford House in Stafford. The other eight are situated in Blackburn, Sheffield, Leeds, Leicester, Elles-mere Port, London, Lincoln and Luton.
Shadow home secretary David Davis said he was "astonished" there were paedophile hostels close to schools.
He backed Mr Reid's approach to Sarah's Law, but urged "very careful consideration. He said: "You've got to be very careful. Obviously you've got to protect the rights and the safety of children, that's paramount. But we must also make sure we don't end up with some lynch mob law."