The report examined how local 14 to 19 consortia are coping with changes to the education system, including the introduction of the diploma and the increased focus on practical learning.
It found that fewer young people took up the diploma than expected.
Consortia were slow to assess the work of students taking the new qualification and the part of the diploma that allows students to direct their own learning was underdeveloped in most areas Ofsted visited.
Despite this, the watchdog claimed progress in introducing the reforms was good or above in all but three consortia.
The overall quality of information, advice and guidance (IAG) was also good in two-thirds of the consortia visited, although few areas were making use of online prospectuses to inform young people about their choices.
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