The government is set to detail how it will replace Educational Maintenance Allowance (EMA) payments, which it plans to scrap next year.
According to Sky News, education secretary Michael Gove is to provide payments of up to £1,200 a year for 12,000 of the most disadvantaged students.
A fund of £180 million will be established to support the most vulnerable students - £320 million less than was spent on EMA payments.
A government source told the news provider that the new scheme is "better targeted, and also fits in with our agenda of devolving power to head teachers who are best placed to know who needs this money".
Writing on Twitter, Aaron Porter, president of the National Union of Students, said: "The key point is the total pot falls from £500m to £180m and still no word on whether they will just take the money from elsewhere in Department for Education."
Posted by Dolcie Thacker