The academy handed out the money to 165 GCSE pupils under its "Achievement and Incentives" scheme.

The average student at the inner-city school received �180, while one high-flier was given �410.

A further �8,500 was paid to 17 A-level students who went on to university from the school.

There's no question the incentives are a motivation and have helped build enthusiasm Ray Priest, headmaster

The scheme assesses each pupil and sets a target grade for each subject.

Pupils get �10 for reaching each predicted grade and �5 extra for each grade surpassing their expected mark.

On top of this, any pupil getting five grade Cs or more receives a lump sum of �150, which is paid directly into his or her bank accounts.

Ray Priest, headmaster of the 1,300-pupil school, said the Academy was not trying to "bribe" pupils into working harder.

"My personal view is that what we're really about is saying `If you work hard and succeed in your personal targets you will be rewarded'.

"There's no question the incentives are a motivation and have helped build enthusiasm."

The incentive scheme, which is funded under the government regeneration project New Deal for Communities, has paid out about �90,000 since it started three years ago.