Scrapping GCSEs and A-levels in favour of a diploma could still take place, despite being rejected by Education Secretary Ruth Kelly.

The House of Commons Education and Skills committee has suggested that the diploma system, proposed by Sir Mike Tomlinson, could be in place within ten years.

MPs said they were disappointed that Ms Kelly had refused to implement the Tomlinson proposals in full and advised the Government to keep the issue under review.

“To have set out to bring in the unified diploma but to have failed could have seriously damaged confidence in the education system,” said committee chairman and Labour MP Barry Sheerman.

However, the committee welcomed some of the proposals introduced in the government’s White Paper on Education, with special praise being given to the educational maintenance allowance scheme to encourage children to stay in education after GCSEs.

Ms Kelly was also urged to address the funding gap between school sixth forms and colleges, as the committee claimed it is the only way to improve collaboration between the different local education providers.

Ken Boston, chief executive of the Qualifications and Curriculum Authority (QCA), has also expressed his disappointment that the Tomlinson report was not implemented in full.

However, he said that the Government’s promise to create a diploma for vocational studies means that the plans should be backed until “something even better” is put on offer.