19/10/2010 12:17 BST | Updated 22/05/2015 10:12 BST

£550million Education Allowance For The Chop

Labour's education maintenance allowance which pays kids to stay in education past 16, looks set to be dramatically cut in tomorrow's spending review.

The £550million education allowance scheme has largely been a failure, with kids still dropping out of education, and cash going to youngsters who would have stayed on at school with or without the handout.

The allowance was launched in 2004, and paid out up to £30 to encourage 16 to 19-year-olds with a family income of up to £30,810 to stay in full-time education. Additional 'bonus payments' of £100 a year were available on top.

Alternatives to the sheme include smallers sums being given directly to colleges who would then determine which children were most in need of extra help.

A Government source said: 'Ninety per cent of the pupils getting it would have stayed in education anyway and it is not an incentive for them. We want to make sure that the people who really need help are the ones who get it.'

What do you think about this story?

Should youngsters be 'paid' to go to college, or is it a complete waste of taxpayers money?