In his Autumn Statement today, George Osborne announced that he was scrapping national pay for teachers.
The move will see teachers in the North West paid less than their counterparts in other parts of the country.
Bill Esterson said the move would hit teachers in the North West and could lead to good teachers leaving the profession in the region.
Bill said: "George Osborne's announcement will damage education in the North West. It will penalise teachers in this region.
"They will be creating a geographically unequal education system by removing national pay levels for teachers.
"George Osborne's announcement will see teachers in the south paid disproportionately more than our teachers here in the North West. He is opening the door to performance related pay for teachers which means that schools in the greatest need of making improvements will struggle to get the best teachers.
"Ironic that he is promoting performance related pay for teachers at a time when he has himself admitted that he has failed to hit his own economic targets."
Bill said this is another attack by this government on people in the North West.
Bill said: "We know that this Tory-Lib Dem Government has hit local authorities in this region the hardest.
"Tory-Lib Dem cuts in this region are substantially greater in this region than elsewhere. While in Dorset the local authority is having to make cuts of £1.20 per person, here in Sefton it is more than £350 per person.
"Now the Tories and Lib Dems are hitting our teachers.
"This is another attack on the North West. Another attack on hard working people.
"This is not fair and my Labour colleagues and I will do all we can to oppose this in the House of Commons."