Education maintenance allowance
Ivan Lewis, minister for skills and vocational education, said: "With this extra cash young people who might have been tempted to drop out of their courses into low paid jobs after the New Year holiday have been given a huge incentive to stay on.
"We have one of the worst post-16 drop-out rates in the world and are determined to reverse this. The bonus is an important part of our overall EMA package and it's extremely encouraging that so many students have qualified for their first payments.
"Students have worked hard for their bonuses. They have all signed personal agreements for attendance and commitment and their schools and college are reporting renewed motivation in the classroom. This is a something-for-something scheme which proved during trials to be exceptionally effective in helping people stay on.
"Many young people across
Stakeholder Response: Association of Teachers and Lecturers
Dr Mary Bousted, general secretary of the Association of Teachers and Lecturers, said: "ATL is committed to widening the participation for students aged 16 and over and supports any scheme which will encourage young people from poorer backgrounds to remain in education.
"Whilst we welcome the financial help for 16-year-olds, we deplore the fact that at 18, students will be faced with the problems of debt if they want to continue on to university."
Stakeholder Response: Institute of Education
Karen Evans, professor of education (lifelong learning) at the
"At least one factor has been the pull of a flexible labour market that gives young people opportunities to take up full-time job opportunities at an early age, on rates of pay that appear attractive to them. These jobs are often taken up without structured education and training provided by or through the employer.
"These factors, combined with deeply embedded cultural expectations among parts of the British population that 'quick transitions into the labour market are best', contributes to one of the 'worst drop-out rates in the world'. Financial incentives to stay on will tackle one aspect of the problem.
"It should also be recognised that for young people, incentives to return after 19 could be a better solution. Research has shown that for alienated and disengaged young people, support for return to learning in their twenties may be more likely to be effective to stabilise their life situation than cash bonuses to stay in education at 16 plus."
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