By Dr Matthew Chiles, 11-19 Policy Adviser, Sector Skills Development Agency. He is writing here in a personal capacity

The new Diploma for 14-19 year olds in England is being hailed as the biggest education development of its kind, in the world, ever. A bold claim indeed, and one that may be overstating things ever so slightly. But what is not in doubt is that as qualification reforms go this is big. All businesses should take note because the aim for the Diploma is for it to have an impact on productivity and competitiveness.

This is a qualification intended to improve the bottom line. Recent changes in government education policy have been driven not only by a need to improve the number of young people staying on in education and training post-16, or a need to continue to improve standards, but also to respond to employers’ demands that young people leave school or college with insufficient functional skills or the ability to become an effective employee.

Poor skills levels means poor productivity and a loss of competitiveness. These problems mean employers are forced to provide remedial training and development, particularly on the basics. And that means extra cost. Employers have known for a long time that a skilled workforce is an important influence on company productivity. Education providers know this too, but by introducing the Diploma, government and employers will be making that link more visible for young people, and so we may be on the verge of a very important cultural shift, a time when applied learning finally emerges from the shadow cast by the academic alternative.

From now on, what you can do is going to be more important than what you know. The content of the Diploma is being overseen by Diploma Development Partnerships, led by Sector Skills Councils in partnership with the SSDA, higher education, colleges, schools and other partners across 14 lines of learning - from engineering and construction right through to IT and sport and leisure.

A phased roll out of Diplomas will take place from 2008, with lines available to all 14-19 year olds from 2013. But it doesn't end there. Employers will be needed in large numbers to help deliver the brand new content that makes up 50% of every Diploma.

The task ahead is huge and will involve a wide range of stakeholders, but what is key is that the new qualification provides a credible and quality programme of learning to young people. Diplomas will become part of a family of qualifications available to all 14-19 year olds that will include GCSEs, A levels, Apprenticeships and the IB. The key task ahead is to build demand amongst this client group.

And with choice being at the heart of government's approach to education, young people will decide if this bold partnership between employers, government and education will finally pay off.

www.ssda.org.uk