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Schools whose students fail their English and Maths GCSEs should be fined, with the money going to further education colleges to pay for resits, says the Policy Exchange think tank.

FE colleges are already facing funding pressures, and take on more students who received below a D in their maths or English GCSEs than schools and sixth-form colleges, says the right-wing think tank in a new paper.

Christine Blower, general secretary of the National Union of Teachers, said this was the wrong approach:

"I think it's a rather strange idea that being fined would be the incentive to help children to do the best they can.

"Schools are doing the very best that they can. There will be a point where there is one mark between getting a C and a D - that's bound to be the case, there are grade boundaries.

And so the idea that you would penalise schools because a young person is one mark below just seems absolute nonsense."