Its education report says the number of pupils not getting any GCSEs is at its highest since 1997/98.
However, the percentage of pupils achieving five GCSEs grade A* to C, including maths and English, actually increased from 35.6 per cent in 1996/97 to 46 per cent in 2006/07. But the report claims this improvement is insignificant, considering education spending rose by 75 per cent in the same period.
A Department for Children, Schools and Families spokesman said: "In 1997, over half of all secondary schools were failing to get 30 per cent or more of their pupils five good GCSEs or equivalent with English and maths. This is now down to a fifth of schools."
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