Bank account warning for students

Students can receive up to �30 per week

Teenagers are being urged to open a bank account if they want to receive a government grant to stay on at school.

Almost a quarter of England's 16-year-olds do not have a current or savings account, necessary to receive the Education Maintenance Allowance.

Around half of these will be eligible for the scheme, which helps students from poorer backgrounds stay in school by paying them up to £30 a week.

The Learning and Skills Council says they should apply early for the scheme.

The first EMA payment, eligible to students who remain in post-GCSE education, is normally received around three weeks after application.

Research by Mori found that 40% of 16-year-olds in London did not have a bank account, whereas in the wider South East 95% said they had one.

'Complicated'

The UK drop-out rate at 16 is one of the highest in the developed world, and is something the government is anxious to change.

The EMA scheme was extended to cover the whole of the UK after pilots in some deprived areas showed extra cash attracted more 16-year-olds to stay on at school.

Almost 300,000 students have signed up since the scheme was launched in March 2004.

EMAs: KEY FEATURES Eligible if born between 1 September 1987 and 31 August 1988, studying at least 12 hours a week Means-tested weekly payments of £10, £20 or £30 Must sign a contract on attendance, coursework and progress Commitment bonuses of £100 (up to £500 in total over two years) Available for academic and vocational courses, including GCSE retakes Can do paid work - means test is on parents' income (max. £30k) Other household benefits not affected

Students whose family income totals less than £30,000 are paid means-tested benefits of up to £30 directly into their bank accounts in return for regular attendance.

However the application process has been criticised for being cumbersome and complicated.

The scheme hit problems at the start when almost 100,000 students faced delays in receiving payments because they had filled in the forms incorrectly.

When the scheme was launched the Tories hit out at "yet another initiative" and said the government should be focusing on improving the curriculum.

But ministers say the scheme is improving the drop-out rate and extended it earlier this year to cover vocational and shorter courses totalling more than 12 hours' guided tuition per week.

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