The fact that many children are still waiting for their Sats results from contractor ETS pales into insignificance beside research we report today suggesting the exams are failing to serve their purpose. The failure of the testing system to reveal actual attainment creates serious difficulties for schools. It does so as initial figures, due today, show that an unacceptable proportion of children are falling short of the standard to be expected for their age in basic numeracy and literacy.

Results for 11-year-olds are likely to show that a quarter of children fail to reach the level required in maths, and a fifth in English. As secondary schools try to grapple with these problems, some find they cannot rely on the evidence that a child has passed a Sats test because "teaching to the test" has got him or her through without inculcating real understanding. Doubts over the quality of marking further undermine the reliability of the tests. As a result, many are losing faith in the entire process.

This is bad news for the Schools Secretary, Ed Balls. He has consistently refused to apologise for the failures at ETS. When warned in March of the risks of using the new online system, he did not pass the warning on to schools. And this affair will not be forgotten. Mr Balls needs to make a decision on the contentious "testing when ready" approach which could replace Key Stage national tests by

2009. Since 1997, as the Conservatives point out, on the Government's own measures, nearly three million children have left primary school unable to read, write and add up properly. At a time when educational underachievement blights so many lives, imposes heavy burdens on employers and universities and undermines Britain's competitiveness, Labour's failure to raise standards, after 11 years in office, has betrayed a generation of children.

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