The scheme had been piloted in 56 of England's local education authorities.
The Scottish Executive is also rolling out a similar scheme for Scottish youngsters (News, 18 February).
"The UK has one of the highest post-16 drop-out rates in the western world," said Bob Carstairs, assistant general secretary of the Secondary Heads Association. "Anything that encourages children to stay on at school is a good thing."
Eamonn O'Kane, general secretary of NASUWT, said: "NASUWT does have some reservations about the means-tested basis for allocating the allowance.
"But the pilot schemes have demonstrated that financial support for post-16 pupils increases the numbers remaining in full-time education." From September 2004, all 16-year-olds from households with incomes under 30,000 will be eligible for a means-tested Education Maintenance Allowance of between 10 and 30 a week. It will be paid directly into their bank accounts in return for strong attendance and commitment.
Young people could also receive bonuses of 100 if they remain on the course and make good progress in their learning.
- www.ema.dfes.gov.uk.