Children's Secretary Ed Balls said a custodial sentence would not be an option, even if young people refused to pay fines for non-attendance.
The government wants to raise the education and training leaving age to 18 to get 100 per cent of young people to remain in education until adulthood. The proposed legislation is contained in the Education and Skills Bill.
The Bill has its second reading in Parliament yesterday. The Conservatives questioned whether the proposals would succeed in achieving the government's aim.
Michael Gove, shadow children's secretary, said: "We already have levels of truancy and unauthorised absence that mean about one in 10 of those aged 16 do not attend."
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