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The government urges that exam papers should be scanned by specialist computer software as part of a crackdown on internet plagiarism by A-level and GSCE pupils in their compulsory coursework. The Qualifications and Curriculum Authority warns that exam boards appear to be failing to spot cheating, even though the number of cases of fraud is increasing. Last year 3,600 teenagers were caught breaching the rules, a 9 % rise on the previous year.

Exam boards report a sharp rise in teenagers caught cheating in public exams. More than 2,500 lost marks for breaking the rules in last year's GCSEs and A-levels - a 9% increase on 2003. More than 900 pupils were caught cheating or plagiarising their coursework. In total, 1,013 penalties were triggered by inappropriate use of mobile phones - 16% up on the same time last year.

Few people enter the teaching profession for the money. Teachers repeatedly describe it as "a vocation", widely recognized as a euphemism for poorly paid. But for a few enterprising teachers, the education system is rife with opportunities for personal financial gain. A report on corruption in education, published this week by UNESCO highlights ways in which heads, teachers and education officials can extort and embezzle school funds.

The Boarding Schools Association (BSA) chairman Melvyn Roffe has declared that thousands of vulnerable children are being denied the chance to go to a boarding school because of ignorance and prejudice in local councils. He has also stated that there are hundreds of children whose life would be transformed by having a place in one of those schools, but because of bureaucratic procedures they are condemned to an ever diminishing circle of failure.

A new system of performance-related pay in schools risks fuelling a rise in fraud as teachers attempt to falsify pupils' results to win salary rises. Teachers could be tempted to "over-egg" children's work to prove they are doing a good job and the proposals could also lead to major employment disputes within schools if teachers who fail to receive higher pay lodge official discrimination claims.

Teachers have complained about "cheating watches" being sold online to give students an unfair advantage in exams. These digital watches include an "emergency button" to quickly switch from hidden text to a clock face. The watches hold data or written information which can be read in exams. Watches are advertised on Amazon with the claim that they are "specifically designed for cheating on exams". But a deputy head from Bath has warned about the scale of this "hidden market" and says it could tempt stressed students into cheating.

A leaked report has revealed “extreme” government concern after an academy trust was found to have paid its chief executive more than £82,000 for 15 weeks’ work. The investigation, which took place over June and July this year, also found that Wakefield City Academy were unable to produce the list of students receiving pupil premium payments (additional funding to raise the attainment of disadvantaged pupils in schools).