This isn't true. The grade awarded by the school is the main factor but it will be moderated by how far school predictions are above previous results and likely grades based on KS2 scores. There is no fairer way to do it in the absence of actual exams. https://twitter.com/LordCFalconer/status/1291976287188324353
Also important to note that it's unlikely that disadvantaged students will suffer disproportionately from this system. They will be downgraded more but they'll also have been over predicted more. They'll likely do a bit better overall than previous years.
Letting everyone keep their school assigned grade regardless would have been a recipe for massive over-prediction (no incentive for the school not to); unfair on prior and future cohorts and would lead to a lottery for places at FE and uni.
There will be opportunities for resits. But ultimately this is the least bad way to do this in a world where exams were impossible. We must try and ensure exams can go ahead next year.
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