Sir John Major has criticised the "truly shocking" dominance of the upper echelons of power in Britain by the privately-educated and affluent middle class.
In remarks that will sting Eton-educated David Cameron, his Conservative predecessor in Downing Street called for more to be done to boost social mobility.
The Daily Telegraph reported that the state-educated former prime minister, who left school at 16, spoke out in a speech to party members in the South Norfolk constituency.
He reportedly said: "In every single sphere of British influence, the upper echelons of power in 2013 are held overwhelmingly by the privately-educated or the affluent middle class.
"To me, from my background, I find that truly shocking."
Mr Cameron has faced claims he has surrounded himself with people from a similarly privileged family and educational background.
Sky's chief political correspondent Jon Craig said the comments were the latest in a series of "blasts" by Sir John against the Prime Minister and his Government.
"His remarks will leave a nasty taste in the mouths of senior Tories because he is attacking them over their backgrounds," he said.
The PM has been accused of creating a circle of privileged people Sir John pinned the blame for a collapse in social mobility on Labour, which he said left a "Victorian divide between stagnation and aspiration".
He said: "I remember enough of my past to be outraged on behalf of the people abandoned when social mobility is lost.
"Our education system should help children out of the circumstances in which they were born, not lock them into the circumstances in which they were born.
"We need them to fly as high as their luck, their ability and their sheer hard graft can actually take them. And it isn't going to happen magically."
Labour leader Ed Miliband's adoption of the one nation party mantra was "absurd", he suggested.
In an appeal for unity, Sir John said the party could win the 2015 general election "but only if we pull together" - saying internal criticism could be productive but should be kept private.
The former PM, whose own time in office was plagued by internal party divisions, said: "Public criticism is destructive. Take it from me. Political parties who are divided and torn simply do not win general elections."
On one issue that has caused grass-roots dissent, gay marriage, he urged people to accept times had changed, warning it was "toxic".
And on another major area of concern, he recommended a less-confrontational approach to the threat from the UK Independence Party.
He said: "We don't need to make personal attacks on UKIP. Many of the UKIP supporters are patriotic Britons who fear their country is changing. It is far more productive to expose the follies in their policies."
Norfolk South MP Richard Bacon, who hosted the dinner, said: "It was a superb speech which drew attention to the huge damage done to social mobility, especially by the last Labour government.
"I think the coalition is acutely aware of this problem and is taking steps to address it such as cutting tax for the low paid and the pupil premium, but it is an enormous task."
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