Could exams as we know them end?

Demos is proposing more teacher involvement in assessment, instead of having a script marked by an unknown examiner.

This, it claims, will simulate a real-life workplace, where bosses get to know the ability of staff over a long period.

Universities would also have a better idea of the standard of applicants than under A-levels.

Abilities

Demos researcher Paul Skidmore said: "It is ridiculous to say we can teach everything we need to know by the age of 18.

"We need a different approach and teacher assessment has got to play a massive part. We have to focus on people's abilities.

"The current system wastes hundreds of hours teachers have spent assessing their pupils. Employers don't just choose employees at random in this way to assess them, so why should schools?"

Demos, which has close links with New Labour, also recommends introducing "learning licences", which show the ability of school-leavers to go on developing skills.

Testing for these could happen in normal time, rather than at fixed points during the year.

Such changes would help end the "false division" between academic and vocational education, Demos adds.

We need to think more carefully about the type of assessment we have in this country John Kerr, Edexcel

Mr Skidmore said: "The great irony of our current system is that our school qualifications do not really qualify us to do anything, at least not in the way that achieving a certain standard of competence can qualify us to drive a car or fly an aeroplane.

"We have lost the benefits of the era of master craftsmen. Standards were set by the professional judgement of those who knew their colleagues. We need some of that back."

John Kerr, chief executive of the Edexcel exams board, said: "We are pleased that Demos has produced such a thought-provoking report.

"We need to think more carefully about the type of assessment we have in this country and this report provides a very good starting point."

The idea of more assessment by teachers has the backing of Ken Boston, chief executive of exams watchdog the Qualifications and Curriculum Authority.

He has warned he cannot guarantee the smooth running of this summer's A-levels, AS-levels and GCSEs because of the sheer volume of entries and a possible shortage of examiners.