Further 14-19 reform measures announced

Among the plans unveiled is a scheme to ensure the views of young people are taken into account when diplomas are being planned and delivered.

Balls also announced that all the Russell and 1994 groups of universities, along with 80 companies, are backing the scheme.

Companies supporting the diploma scheme include Vodafone, Land Rover and Toshiba, with JCB launching a 14-19 academy near its Staffordshire HQ. A set of criteria to gain a portion of the £55m funding for Diploma projects is also available for companies who wish to set up similar initiatives.

Balls said: "Young people are often at the cutting edge when it comes to the latest music, gadgets and fashions - already evidence at local level shows they've got great ideas and lots of enthusiasm for their education and I want to make sure we use it."

He said he hoped the scheme would create "lessons that are loved rather than endured by the iPod generation".

"We have already received extensive positive feedback from young people taking the Diploma, saying how exciting and enjoyable they found their studies," he said.

"Teachers have also told us they are delighted by how successfully the combination of theory with practice has engaged their students", he added.