The education secretary has pledged to keep A Levels and GCSEs and raise the "effective" school leaving age to 18.

Publishing the government's white paper on reform of the 14 to 19 education system on Tuesday, Ruth Kelly said the exams will be made harder and more diverse but not scrapped.

Promising to give the "same emphasis in more vocational education as we currently do in academic", she also took steps to ensure all 16-year-olds stay on at school, college or in a workplace-based learning role.

The government wants to lift the school leaving age from 16 to 18 for all pupils - but will offer more practical training to those less gifted pupils.

Kelly said she wants to "end the scandal" that 16 "is the age when you can drop out".

Tomlinson

However the blueprint rejected former chief inspector of schools Sir Mike Tomlinson's recommendations for a universal baccalaureate-style qualification which would cover all forms of learning and incorporate already existing exams.

Kelly came out against the key Tomlinson report findings, saying she wanted to "improve what we've got, not replace it".

"Children are not being stretched and challenged in the way I would like them to be," she said.

"You don't improve a system by getting rid of what's good. You build on what's good in the system. GCSEs and A Levels are clearly recognised qualifications."

However, headteachers and schools inspectorate Ofsted have accused the government of bowing to media pressure over the decision to keep the exams, rather than listening to education experts.

Workforce

With businesses complaining that schools are not equipping students for the workplace, a fresh emphasis was put on literacy and numeracy for all, as well as stretching the most able pupils.

And crucial to the government's vision of a highly skilled workforce are what Kelly claimed are "radical" plans which keep all 16-year-olds in education with new employer-designed vocational diplomas.

Less academically able children will be able to spend more time in the workplace environment but will still be tested on reading, writing, and arithmetic.

Kelly also confirmed that a new grade and modules will be introduced for A Levels and GCSEs to ensure brighter children are tested to the full, including university standard courses.

"I expect all diplomas and A Levels to add stretch," she said.

But she said there was "no consensus" on adding breadth to the curriculum by adopting the baccalaureate, adding that it was "too soon" after the introduction of the Curriculum 2000 reforms to tear up the system again.

Kelly hailed a shift the emphasis from  "comprehensive schooling to comprehensive education in every area", through the creation of more specialist schools, colleges and courses.

'Spin'

But shadow education secretary Tim Collins said Kelly "is all spin and no substance".

"Far from raising participation rates in education and training, the number of people not in education, employment or training is up since 1997," he added.

"Far from stretching bright pupils, they have awarded the top grade at A Level to nine times more people than got it 20 years ago - and they have happily endorsed a system which awards an A grade at GCSE for 45 per cent and a pass for just 17 per cent."

Liberal Democrat spokesman Phil Willis added that he was "deeply disappointed" with the government.

"I think it is an incredibly black day for education - what she is going to have is A Levels for our best children and skills for the rest," he said.

"That is what has dogged the British education system now for decades."