The government has announced a three-year trial of the new grant - called the Education Maintenance Allowance - in 12 areas of England.

The �100m programme is being targeted at teenagers from families with low incomes. Those with family incomes of below �13,000 will qualify for the full grant.

Baroness Blackstone: "A tremendously exciting initiative"

The Education Minister, Baroness Blackstone, said the initiative had the potential to make a real difference to the life-chances of young people from disadvantaged backgrounds.

"Many young people deny themselves the opportunities open to their better-educated peers, and deny society the benefit of their skills," she said.

"Currently, the number of 16-18 year olds in education or training from lower-income families is 20% lower than for young people from better-off households.

"The pilots will test how an allowance encourages these young people to stay on and achieve in education. If the pilots are a success, as we think they will be, then we will consider the introduction of Education Maintenance Allowances nationally."

The pilot projects will be run by the local education authorities of Bolton, City of Nottingham, Cornwall, Doncaster, Gateshead, Leeds, Middlesbrough, Oldham, Southampton, Stoke-on-Trent, and Walsall.

Four London boroughs - Lambeth, Lewisham, Southwark and Greenwich - will run a joint trial.