The inquiry found a growing belief among white working-class families that the current education system does not guarantee future success.
In the summer, the inquiry also acknowledged that the true scale of white working-class disadvantage is “likely to be substantially larger”, as the education data they looked at did not include families who were on low incomes but did not receive free school meals.
Since then, all families receiving Universal Credit have become eligible for free school meals.
Under the new phase of the inquiry, practical recommendations for government, schools, colleges and other organisations working with white working-class communities will be developed.
This action will include a research programme looking at the routes taken by teenagers aged 14 to 19, investigating how schools can work with communities to provide clearer pathways into further study and successful employment.
The new phase of the inquiry will also look at how schools can ensure the transition from primary to secondary school builds strong foundations.
“Right now, too many white working-class children are falling behind at every stage of their education,” Powell said.
“That is why I am backing this independent inquiry to get to the heart of the barriers holding children back – from their first steps into school, through to the opportunities and choices they have as teenagers into further study, training or work.”
It comes after Prime Minister Andy Burnham announced plans to open up new technical routes from age 14 in England over the summer.
The prime minister said he was “on a mission” to reduce the number of young people not in education, employment or training – known as “Neet”.
Currently, nearly a million young people are classed as Neet.
Former minister Alan Milburn’s interim report, external found that children who are not school-ready at aged four or five are nearly three times as likely to be Neet by ages 16 to 17.
A final report by Milburn is expected to set out his recommendations for tackling the issue in the coming weeks.