OP, you mentioned the possibility of work and voluntary work. These are both options worth exploring. Your daughter's age need not be a barrier. Am I right in thinking she has just finished Y11? There are few legal restrictions on the employment she can do. While she is under 18, the minimum wage is lower and while you might not think this is a good thing, it can influence prospective employers to take her on.
A young friend of mine recently started working part-time at a cafe and volunteering part-time at an animal sanctuary. She plans to work with animals, and is enjoying the feeling of being a productive member of society. She might or might not go to college to do a qualification later, but she doesn't want to just now.
I know that these days there is a lot of emphasis on training, and on avoiding "dead-end" jobs. However, at just 16 many of us had no idea what we were going to do with our lives. The main thing IMO is to get out there and try some different things, get some life experience, and improve her self-esteem. The rest can come later.
It's true that your dd is supposed to be in some form of education or training for another year. However, that doesn't have to be full-time. If she is working or volunteering at least 20 hours a week then the education can be part-time. If she can't find a suitable educational opportunity at this time, I think she'd be better off not bothering, rather than going onto some random crap course which isn't right for her and having her confidence knocked yet again. The government has said that for the time being at least, they won't criminalise young people who don't continue in education and training.