Bradford must succeed in improving education choices for the district's teenagers - or the Government will step in.

Schools are being told they must work together in "federations" or groups to increase the choice of courses for pupils aged 14 to 19.

Head teachers at a conference on the federations yesterday heard Government claims that far too many youngsters drop out of education at 16.

They were told schools are putting on too many competing A-level courses for shrinking numbers of pupils while thousands of others miss out altogether, due to a lack of lower-level courses.

The new plan aims to make schools and colleges provide a better choice of courses and less duplication.

The conference, hosted by the Learning and Skills Council for West Yorkshire, heard that in 2001 Bradford had lower staying-on rates than anywhere in the country.

In 2002 it had improved slightly but was still tenth from bottom nationally.

Margaret Hodge, former Higher Education minister, recorded a video message to the conference before moving in the Government reshuffle.

She said: "The young people of Bradford have struggled with a confusing, competing and often low-quality environment to take forward their education.

"There was no coherent strategy, poor value for money, and a restrictive curriculum choice. This led to low take up, poor completion and achievement rates and many wasted opportunities."

She said institutional pride at individual schools should not be allowed to get in the way of reform.

"This status quo is simply not an option for the future. Young people deserve better."

The Learning and Skills Council, which funds sixth forms and colleges, is determined schools should work together instead of competing for sixth form students.

Its expert consultant Dr Terry Melia warned: "If this doesn't work you will get something imposed on you as Ministers are eager for improvements.

"You will be pushed into some different form of tertiary system. Don't bother about defending your own territory - think big."

There are five area federations - Bradford North, Bradford South, South West by West Bradford, Shipley, and Bingley/Keighley/Ilkley.

Schools have begun co-operating but many hard decisions about which courses should be offered where are unlikely to take place until 2005-6.

Dr Melia said his research into duplication had discovered 130 separate art and design courses being run across the district, while only 273 students had actually sat a GCE exam. "This is unacceptable and a gross waste of effort," he said.

John Patterson, head of Bingley Grammar, said he "didn't lose sleep" over his own sixth formers as most of them went on to university. But he did worry about students who left school with less than five A-C grades at GCSE.

"There aren't enough training places for these students," he said.

Tony Thorne, consultant head of Carlton Bolling, said there was growing co-operation between neighbouring schools but there were a lot of issues to overcome before the federations plan was fully operational.