Hundreds of young people in Birmingham have been thrown a financial lifeline to help them stay in education – filling the void after the axe of the Educational Maintenance Allowance.

Birmingham City Council has provided £168,000 to support pupils who were missing out after the Government’s decision to end the grant, which was worth £30 per week for 16 to 18-year-olds from poorer backgrounds.

Training chiefs in Birmingham have been calling for extra cash to be made available after seeing a drop in the number of students turning up for courses.

The new incentive, dubbed the Alternative Training Allowance (ATA), will provide 700 teenagers who have been struggling to meet their education costs with the equivalent of £20-a-week for their nine-week course.

The fund also provides for similar payments to hundreds more who are expected to be “priced back in” to education.

Training providers match-funded the allowance by providing weekly travel passes worth £14.50, and in some cases food vouchers and other incentives.

Kevin Hayes, chief executive of training provider Enta and joint chairman of the Foundation Learning Forum, said: “When EMA stopped, the number of learners on some Enta courses dropped by half because trainees could not afford to attend.

“Additional funding was vital to stop these youngsters getting thrown on the scrap heap and we’re absolutely delighted with Birmingham City Council’s decision.

“It’s a landmark agreement and I think it will lead to other areas across the country following Birmingham’s example.”

To be eligible for the cash, learners have to be aged 16 to 18 and completing a Foundation Learning programme.

Mr Hayes added: “The outcomes from this initiative will be a reduction in the number of young people entering the NEET – Not in Employment, Education or Training – register and a reduction in criminal activity amongst young people.”

Birmingham and Solihull Work-Based Training Providers Network are paying the costs to administer the fund and ensure money goes direct to learners.

Enta, which is also a leading social enterprise, will manage the fund.

Councillor Les Lawrence, cabinet member for children, young people and families, said: “We’ve been in close discussions with the Work-Based Learning Partnership and the Foundation Learning Forum for some months now and I’m delighted that we were able to introduce the Alternative Training Allowance.

“It will be a lifeline to more than 1,000 learners in the city and proves that Birmingham’s education system is at the very forefront of the UK in supporting its youngsters.

“My belief is that this scheme will be very successful and we are therefore exploring how this can be continued and developed on an ongoing basis.”