It used to be simple. You made it to the sixth form (most did not), studied for two years and at the end of it took tough three-hour exam papers. If you succeeded and emerged with good A-level grades, a place at one of the top universities was there for the taking. It may not have seemed like a golden age at the time, but the A-level was rightly regarded as the educational gold standard.

Now what happens? You make it to year 12 (most do), study for the three units that count towards an AS-level. The next year you do the A2-level. A significant proportion of marks, up to 30% in most subjects, are awarded on the basis of coursework. If any unit is not up to scratch, you can take it again. At the end if you get good grades, as you should, they no longer open the right doors. Such is the welter of A grades — nearly a quarter — that they have become a devalued currency. Britain has left the gold standard. Not only that but, as the National Association of Head Teachers warned yesterday, the exam system is heading for collapse because so many pupils appeal against their grades.

Ofsted, in its annual report last week, found that 13% of state secondary schools are “inadequate” and more than half are failing to meet expected standards. Secondary schools are in a mess and so are A-levels.

As the gold standard of the A-level has become tarnished, so other qualifications are filling the vacuum. Cambridge has been developing a new exam, the Pre-U, as an alternative to A-levels, and has sent draft syllabuses to schools covering 12 subjects. The Pre-U would be similar in many respects to the old exam-based A-levels. One aim is to revive “the dying art of the essay”.

More significant has been the International Baccalaureate (IB). Introduced to Britain in 1970 and now offered by 44 independent schools, its pass rates have remained stable. It is seen as a demanding exam, with pupils studying six subjects until the age of 18. But ministers always insisted it was not superior to A-levels. Now, astonishingly, the government appears ready to endorse it. As we report today, the prime minister will say that by 2010 at least one school in each of the more than 100 local education authorities will offer the IB. You can see his thinking, that it is the choice agenda in action. Perhaps he even believes state schools can compete with the independent sector.

Think about what it will really mean. Universities and employers will be expected to choose from candidates with a bewildering range of qualifications: devalued A-levels, Pre-U qualifications, the IB and, once the floodgates have been opened, any number of others. It is a recipe for muddle and confusion.

There is an easy solution: restore our faith in A-levels. First, introduce an A* grade. This is a simple solution which the government has touted around for years but without doing anything. A similar grade exists for GCSEs, so it would be logical for the top 5% or so of A-level candidates to be marked out. But it seems ministers are alarmed that it would be dominated by the independent schools even more than they monopolise existing grades at the moment, thus highlighting the failure of the state schools.

Second, abolish AS-levels. There was never any logic in splitting A-levels into AS and A2. A straightforward A-level, sat two years after GCSEs, is best. Third, abandon coursework. While projects and practical work have an important place in education, they should not be part of the final mark. Fourth, base results on demanding papers at the end of the course. Not only does this test the ability of pupils to argue and analyse, but it would also stop the practice of retaking units to nudge grades higher.

None of this is difficult, although it would require ministers and some in the education establishment to eat their words. But it is essential. Britain needs to get back on the educational gold standard fast.