Places on a new work-based scheme are in demand

There was early evidence of better attitudes, behaviour and attendance in lessons, Ofsted said.

This was even though many pupils had been chosen because of bad behaviour or poor attendance at school.

The scheme was often over-subscribed - and children had to be selected for the vocational places on offer.

Staying-on rate

The Increased Flexibility Programme involves funding for partnerships between schools, further education colleges and work-based learning providers.

Ofsted said more than 260 were formed in the first year, 2002-03, involving about three-quarters of colleges - which usually took the lead role - and almost half of all secondary schools.

There are now 42,000 pupils involved. One goal is to increase to 75% the numbers of those on the scheme who stay in education and training beyond the age of 16 - an area in which the UK has a relatively poor record.

Ofsted visited more than 60 colleges, around 20 work-based learning providers and more than 80 secondary schools to inspect the scheme for the Department for Education and Skills.

Shortcomings

Among its strengths, the inspectorate said pupils responded positively to the wider opportunities offered by vocational GCSEs and other qualifications.

Their horizons were broadened in other ways too.

"This included an awareness of membership of a learning community broader than that of the single school."

But, partly because of the short time available to plan the scheme, its organisation was judged to be unsatisfactory in a quarter of the partnerships.

There was a lack of shared information on what pupils could do, so they were often put on courses at a level that was either too low or too high for them.

"Teaching was good or better in only half of lessons seen, although satisfactory or better in almost nine in ten," Ofsted reported.

"Levels of attainment were unsatisfactory in lessons observed in a quarter of schools and a third of work-based providers."

'Selection by aptitude'

Some lecturers have complained to BBC News Online that colleges are being made a "dumping ground" for hard-to-teach pupils that schools do not want.

The Ofsted report said that indeed in "too many" cases, "pupils were selected as a result of their behaviour or poor attendance at school".

Some schools and partnerships restricted access to the programme to "problem" pupils, specifically targeting low-achievers or those turned off by schooling.

"This risked perpetuating a negative image of vocational education among pupils and parents," the report said.

But a strength of the programme was the improvement in pupils' attitudes, behaviour, attendance and broader achievements.

They were good or better in nearly three visits in five and satisfactory in more than nine out of ten.

"Pupils spoke positively of their experiences and valued their increased confidence, self-esteem and the vocational orientation of the courses," Ofsted said.

In many programmes demand for places exceeded capacity - "leading to selection by aptitude, career ambition, behaviour, punctuality and attendance".

Concerns

"Many programmes provided a fresh opportunity to disadvantaged pupils and those rejecting school," the report said.

"There were examples of pupils successfully re-engaging with education."

A spokesperson for the Department for Education and Skills welcomed the findings.

"We are already addressing the concerns raised by working with Ofsted and other partners to raise standards further across the programme," she said.

The Association of Colleges said that, for many colleges, funding was "a major inhibitor" to expansion.

"Government allocated just �38.3m to this programme in 2003-04. Colleges have to subsidise it from their reserves and/or turn schools away."

It estimated the true costs as �82m in 2006-07, rising to �146m in 2007-08.

Liberal Democrat spokesman Phil Willis said: "The expansion of the vocational offer at Key Stage 4 is welcome but threatens to be short lived unless ministers begin thinking in the round."

The shadow education secretary, Tim Yeo, said: "The government's vocational education policy is muddled, which has created a dislocation between business and the FE sector."

The "arbitrary" higher education student target was encouraging more young people to "dismiss the vocational route".

"The solution is for a simplified demand-led strategy rather than the supply-led system we have currently."