Half of all 16-year-olds will receive up to £30 per week if they decide to stay at school, Charles Clarke has said.

Government Response: Department for Education and Skills

Education secretary Charles Clarke said: "The UK has one of the highest post-16 drop-out rates in the western world. This government is determined to smash school drop out rates at 16 and boost the aspiration and opportunities for those young people who have never viewed staying on at school or college as something for them.

"There is no point having improving GCSE results and higher education participation rising towards 50 per cent if there remains a huge chunk in the middle that continue to drop out and enter into a cycle of continuous low paid work or unemployment.

"We must address this ‘opportunity gap’ through the new EMA, using financial incentives to help replace the ‘culture of dropping out’ at 16 with a ‘culture of getting on’. We expect over half of English 16 year olds to be eligible for the EMA so I call upon Year 11 students across the country to pick up their form and claim their EMA.

"But, EMAs are not money for nothing. You only earn if you learn. The weekly payments depend on the young person being able to demonstrate that they are committed to turning up and working hard. If you stop learning, then you stop earning.

"The new EMA is a revolutionary public sector reform approach to cutting the UK’s appalling post 16 drop-out rate. It is revolutionary because the payments will not be made to providers (LEAs or colleges) but will be made direct to the customer (16 year old students).

"EMAs will produce the biggest increase in 16-18 participation in a decade. Based upon the IFS evidence we project that by 2006/7 EMA will be causing an additional 72,000 young people to be participating in further education every year than would have done before EMA was introduced. That is over 70,000 young people in education, the vast majority of whom would otherwise have been in dead-end jobs with no training or self development at best and unemployed at worst."

Party Response: Liberal Democrats

Liberal Democrat education spokesman Phil Willis said: "The UK has one of the highest rates for leaving school at 16 in the developed world.

"The government needs to offer real incentives to young people to stay in education.

"Under this scheme young people are still better off going into low paid work at three pounds per hour than staying in the classroom. Continuing their education simply makes little financial sense.

"Sixteen-year-olds from poorer backgrounds are still missing out under Labour."

Forum Response: Association of Teachers and Lecturers

ATL general secretary Dr Mary Bousted 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.

"This is an example of the disjointed and fragmented approach to policy making which the prime minister himself has recognised as a continued failing of this government."

Forum Response: Professional Association of Teachers

PAT general secretary Jean Gemmell said: "We welcome the Education Maintenance Allowance, which will hopefully encourage more young people to stay on in education."

Forum Response: Secondary Heads Association

John Dunford of the Secondary Heads Association told ePolitix.com: "SHA believes that this scheme represents good value for money and will lead to a substantial increase in the staying-on rate of 16 year olds, which has historically been far too low in this country."