Young people would be able to gain credits for volunteering and community work under the proposals, which form part of the Government's education reform agenda.
Modern apprenticeships and Entry to Employment (e2e) work-based learning programmes would be part of the diploma structure, which would result in GCSEs and A-levels being scrapped.
Under the four-stage diploma structure, students would sit each level when they were ready. The four stages would be: entry, foundation, intermediate and advanced.
The new structure, which has been compiled to recognise that "too many young people are disengaged from education", puts an emphasis on skills such as problem solving, working with others and using computers.
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