Ofsted says the Kettering Borough Training (KBT) study programme ‘requires improvement’.
The programme, which helps young people who have emerged from the education system without adequate literacy, numeracy or social skills to secure employment, was criticised for the quality of its teaching.
But the council says when inspectors visited, a new teaching style was still in its early days and standards have since improved.
A council spokesman said: “KBT has overhauled its teaching style and provision in the last year.
“This was in its early weeks of operation when Ofsted visited, so had not yet produced formally recognised outcomes.
“In the last few months, however, KBT has secured better than the national average results from recent programme leavers, better attendance at lessons and retention of learners on the programme and structured work experience for all learners.”
The Ofsted report said that too few learners were achieving their planned qualification and performance was not monitored well enough by managers.
But the council was praised for the level of support that learners receive and the fact that people on the programme make good progress in developing their confidence and self-esteem.
The council’s apprenticeship provision was also found to be good.
The council spokesman added: “Ofsted have also congratulated us on the quality of work we have carried out on safeguarding standards, especially for those in care, and on the work experience opportunities arranged for our learners.
“KBT is not complacent and of course aims to do its best for its learners.
“The Ofsted report will help us to continue to challenge our performance and that of our learners.”