This IFS report studies the long-run effect of the Education Maintenance Allowance on educational attainment, earnings and crime.
The study examined the effects of the Education Maintenance Allowance (EMA), a program designed to financially support students from low-income households in further education. The report reveals that while the EMA did increase participation in full-time education, its long-term impact on educational attainment and future prospects was limited.
The researchers found that the EMA successfully boosted the number of students staying in full-time education, particularly in further education colleges. However, this increase in participation did not translate into significant improvements in academic achievement. Specifically, the study found no significant improvement in A-level grades or vocational qualification rates, and there was no evidence of increased university attendance.
Furthermore, the allowance led to a decrease in students' part-time earnings at age 17, likely due to a reduction in working hours. There is also some evidence that the EMA slightly reduced earnings and employment in the longer term. Finally, the report's cost-benefit analysis indicated that the EMA delivered relatively low returns on government spending.
These findings suggest that the EMA, while increasing educational participation, did not translate into substantial improvements in long-term outcomes. Researchers indicate that the program may have unintentionally disincentivised valuable work experience and training. This report will likely fuel further debate on the effectiveness of financial support programs for students and how to best improve educational outcomes for disadvantaged young people