Teenagers could receive thousands of pounds in compensation for being given the wrong GCSE and A-level grades, examination chiefs said.

England’s biggest examinations board, the Assessment and Qualifications Alliance (AQA), said it feared that the proposals, outlined in a government consultation document, could open the floodgates to legal action from thousands of pupils.

Almost 22,000 pupils in England, Wales and Northern Ireland were awarded new GCSE and A-level grades last year after challenging their results. The AQA said that the total bill could run to £1 million a year.

Teachers might welcome more pressure on boards to ensure accurate grading. But awarding bodies could respond by increasing examination fees, according to The Times Educational Supplement.

The Government’s proposals were set out in its consultation on the creation of a new examinations regulator, to be known as Ofqual. The consultation, which is now closed, canvassed views on whether Ofqual should have the power to “intervene and/or impose a sanction – this could include the power to enforce financial or other penalties”.

The AQA said such a move could open the floodgates of litigation. A spokeswoman for the Department for Children, Schools and Families said no final decisions had yet been taken.

Times Recommends

• Milk: do we need a dairy godmother?
• DIY: the women doing it for themselves
• First double portrait of Princes unveiled