Teenagers in England who fail to achieve at least a Grade C in English and maths GCSEs will have to continue studying the subjects from this term.
It means hundreds of thousands of youngsters in school and college will have to carry on with the subjects until the age of 18.
Employers have warned that young people need to improve these skills.
Education Secretary Michael Gove said the subjects were the ones "employers demand before all others".
'Huge impairment'Up until now, pupils have been able to drop the subjects at the age of 16 without having gained a qualification in them.
Many would never study these subjects again, prompting concerns from employers' organisations that too many young people lack literacy and numeracy skills necessary for work.
RAISING THE LEAVING AGE
- Separately from making pupils keep studying maths and English, this week also sees the raising of the "participation age" in education and training in England to 17
- It does not mean that pupils have to stay in school, but those who are not already in education will be expected to continue some element of education and training
- This means that teenagers in work, part-time or full-time, will be expected to have some element of training
- In 2015, this will be raised again to 18
- Teenagers who are not in education and employers who do not provide training will not face sanctions, as this is meant to be about raising education levels rather than introducing punishments
- The last increase was raising the age to 16 in 1972. Research this year suggested there were positive benefits a generation later
Last year, there were more than a quarter of a million 19-year-olds without a C grade in English and maths.
The intention is for teenagers who missed C grades to re-take GCSEs in maths and English, but there will also be an option to take other types of maths and English lessons.
In a separate measure also being introduced, the participation age for education and training is being increased to the age of 17. It will mean young people will be expected to remain in some kind of education or workplace training, although there will be no sanctions as it is phased in.
Skills minister Matthew Hancock said the requirement to keep studying English and maths was not about re-sitting exams but about continuing to develop these essential skills.
"For those who fail to get a C at GCSE, it's a huge impairment to their future life, their ability to participate not just in work but also as a citizen " he said.
"The crucial thing is that they keep learning and if they can get up to that GCSE standard, that's terrific."
Mr Hancock said that most of those who did not attain a grade C first time around headed to a further education college and the there was a programme to increase the number of English and maths teachers at those institutions.
'Wasted year'The importance of developing basic skills beyond the age of 16 was emphasised by Prof Alison Wolf in her report on improving vocational education for 14 to 19-year-olds.
"Start Quote
End Quote Professor Alison WolfEvery other country in the developed world concentrates on improving the language and maths skills of its post-16 students, and so should England"
She found that too many vocational qualifications lacked value for employers and too many youngsters were entering adult life without adequate skills in literacy and numeracy.
"Good English and maths grades are fundamental to young people's employment and education prospects," she said.
"Individuals with very low literacy and numeracy are severely disadvantaged in the labour market."
Prof Wolf welcomed the implementation of her proposals.
"Every other country in the developed world concentrates on improving the language and maths skills of its post-16 students, and so should England. Recognising the central place of English and maths skills in society is long overdue," she said.
But Labour's shadow education secretary, Stephen Twigg, said more urgent action was needed.
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Skills minister Matthew Hancock: "The crucial thing is that they continue to keep learning"
"In 2012 Labour set out ambitious plans for all children to study English and maths to 18.
"A whole wasted year later and the government have only got half way there. This isn't good enough. [Prime Minister] David Cameron needs to listen to employers - they want all young people to continue building these key skills to 18."
Alison Sherratt, president of the Association of Teachers and Lecturers, said she was not convinced about the change.
"It's going to be hard because they're going to obviously have to find a lot more English and maths teachers," she told BBC Breakfast.
Christine Blower, general secretary of the National Union of Teachers, said: "It's critical the government works with schools and colleges to make sure that what is on offer for those young people is not marching them in and out of the exam room, but actually making sure they are developing by having an appropriate curriculum."
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