The hosts scored two tries within seven minutes through Yorkshire Carnegie's Max Green and Worcester's Huw Taylor.
Harlequins' Sam Aspland-Robinson, London Irish's Johnny Williams, Saracens' Max Malins and Carnegie's Max Wright also scored in a 39-17 victory.
Ireland had earlier beaten Argentina 37-7 at the same venue to reach their first ever final.
England, who have won all four of their games so far, were beaten 21-16 by New Zealand in the final in Italy last year, but had won the previous two tournaments.
Ireland set up their comfortable victory over Argentina with three tries in the first half, and will now face England on Saturday at the AJ Bell Stadium.
The men in green had previously only reached the last four once in this competition, but have impressed with wins over New Zealand and Six Nations Grand Slam winners Wales during the pool stages.
Wales suffered a humiliating defeat as New Zealand ran in 11 tries to win 71-12 while Scotland lost 35-17 to an Australian team who they had beaten in the pool stages.
Wales and Scotland will meet on Saturday in a play-off for seventh and eighth place.
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England reached a fourth successive World Rugby Under-20 Championship final by beating South Africa in Manchester.