The Department for Education and Skills is proposing to raise the age for leaving education to 18.
Participation would include work-based learning, and vocational training. The initial proposal is to introduce the requirement for 17-year-olds in 2013. Young people who refuse to participate could be issued with a civil attendance order, which if breached, could lead to criminal proceedings.
Martina Milburn, chief executive of The Prince's Trust, said: "Giving a criminal record to teenagers who drop out of education will only force them into a downward spiral of unemployment and crime."
Bob Reitemeier, chief executive at The Children's Society, called the policy "shocking".
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