Smith said personalised learning is central to the new national entitlement for 14- to 19-year-olds,which will be included in an education bill to be introduced to Parliament in 2006.
She added that she wanted to double the 90,000 14- to 16-year-olds currently in vocational learning outside school.
The specialised diplomas in the 14 to 19 education white paper will include non-formal learning awards in a wider personal social development offer.
The Qualifications and Curriculum Authority is currently working with the Learning and Skills Council to incorporate non-formal awards into pre-Level 2 provision (GCSE level).
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