In response to announcements in the Chancellor's comprehensive spending review, the Association of Colleges has welcomed the roll-out of Education Maintenance Allowances (EMAs) across the country in 2004.

Students at colleges of further education and sixth form colleges are the biggest users of EMAs. Two thirds of EMA holders are attending colleges and a higher proportion than in schools receive the maximum allowance. Colleges have 20% more 16-19 year old full time students than schools, and a quarter of them come from the most deprived Local Authority wards in the country.

Across the pilot areas, participation rates have risen by some 6% amongst eligible young people. One college in the pilot areas for EMAs found its ability to retain young learners from poor families has improved by 20%.

However, Dr John Brennan, AoC Director of Funding and Development warned : "EMAs will go some way to encourage young people who have dropped out from schools to continue in education. We warmly welcome them. We also welcome the current legal reforms in relation to 16-19 transport which require Local Authorities to ensure transport is available to young learners on an affordable basis."

The Association also welcomed the broader funding increases in education. David Gibson, Chief Executive of AoC said: "Colleges are delighted that education remains at the forefront of Government’s investment policies. The 6% real terms increase in education spending must be good news for the UK’s future prosperity.

"However, pay in colleges has fallen behind that of teachers in schools and there is a funding gap of some 20% between what schools and colleges receive per student. The consequence is that 50% of colleges are trading at a deficit and 20% are in a very serious financial condition. We are looking forward to understanding Government’s additional plans to help colleges through this cash crisis, which Government has itself acknowledged has arisen through years of neglect."