Ed Balls and John Denham have published a consultation document setting out detailed proposals for the regulation and development of qualifications and assessment in England.

Mr Denham, the secretary of state for innovation, universities and skills, said:

"Today's announcement is a major step forward in securing the right approach to the regulation of qualifications. I am particularly pleased that employers will now be able to get recognition for their own qualifications.

"This will ensure that national qualifications more closely meet the skills needs of business. This is another good reason for employers to expand the investment they already make in the training of their staff."

The consultation document includes details on plans to establish:

* an independent regulator - the Office of the Qualifications and Examinations Regulator, which will take on the regulatory functions of the Qualifications and Curriculum Authority (QCA);

* and a development agency for curriculum, assessment and qualifications which will take on the non-regulatory functions of the Qualifications and Curriculum Authority (QCA).

The document sets out proposals for the powers and responsibilities of the new regulator and the agency. It also includes proposals on issues such as governance, appeals and the operational relationship between the two organisations.

The consultation runs until 10 March 2008.