MORE young people are learning that it pays to stay on at school.

Under a Government pilot scheme pioneered in Gateshead and Middlesbrough, some 16 and 17-year-olds are being paid up to £40 a week to go on to college.

A study shows that five per cent more teenagers in Education Maintenance Allowance (EMA) areas are staying in education because of the allowances, which are mainly targeted at youngsters in deprived areas.

Education Secretary David Blunkett said: "This is a very significant change in perceptions about education.

"Parents, young people and LEAs (Local Education Authorities) in the pilot areas had a positive attitude towards EMAs.

"There is also evidence that the something-for-something approach that underpins them is having a positive effect in encouraging extra effort on the part of students."

The scheme is being operated in 15 areas, including Middlesbrough and Gateshead.