The BBC has reported that for the first time state schools are to be allowed to teach international GCSE. The IGCSE exam, which resembles the old O-Level, is favoured by some independent schools and those who believe the GCSE doesn't challenge brighter pupils.

Schools Minister Nick Gibb said the move would save £1.77m, but suggested the changes to exams were driven by ideological rather than financial concerns.

Ministers also said they would not be going ahead with three academic diplomas planned for 2011. Diplomas in science, languages and humanities had been planned to add academic rigour into the vocational qualification in order to make them more attractive to academically brighter pupils.

Association of Schools and College Leaders said: "Many school leaders have put considerable time and effort into preparing for these diplomas and will be disappointed that they are being abandoned before a full review takes place."