EDUCATION chiefs at East Lancashire colleges today welcomed the move to bring in Education Maintenance Allowances worth up to £30 a week for hard-up pupils.

The grants mean students who may have dropped out of education aged 16 because they cannot afford to go to college will be paid to study under the new Government initiative.

Charles Clarke, the education and skills secretary, wants eligible Year 11 students to apply for the cash in a bid to tackle drop out rates from September this year.

The 'earn as you learn' allowances are seen as a financial incentive which will help replace the culture of dropping out and comes after a successful five year pilot.

Chris Osborne, vice principal of curriculum at Blackburn College, said: "It is very good news and will hopeful encourage students who have left further education because of financial difficulties to stay on and pursue their learning."

According to the Lancashire Learning and Skills Council which funds all post-16 education in Lancashire there are around 2,000 students who drop out after 16 with 17,000 staying on for some form of learning.

Now all young people from households with incomes of £30,000 or less will be eligible for means-tested EMA payments of between £10 and £30 a week paid directly into their bank accounts in return for strong attendance and commitment.

It is expected to bring an increase of around six per cent more pupils continuing with their education. In lower socio-economic areas like parts of Burnley and Blackburn, EMAs could increase the staying on rate of 16-year-olds by as much as 10 per cent, experts predict.

Sandra Whyte, Director of Learning Services at the Learning and Skills Council Lancashire, said: "Lancashire has a higher than average number of young people who stay on in some form of education or training post 16. We are determined to prevent young people drifting into the margins of society."