The welsh Government has announced that Sixth form and college students from low income households will receive a £10 grant increase to help with travel and food costs.
The Education Maintenance Allowance (EMA) had been frozen at £30 for nearly 20 years.
The new higher payment will be available from the beginning of the summer term.
Announcing the increase, Wales’ education minister, Jeremy Miles said there would also be a comprehensive review of the scheme.
He said education students are eligible if their household income is £20,817 or less if they are the only young person in the household, or £23,077 if there is more than one young person in the household.
Around 16,000 young people in Wales currently receive the payment.
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According to the Bank of England’s inflation calculator, the £30 payment, which was first introduced in 2004, would now be £50.13 if the payment had kept up with inflation.
Jeremy Miles said the boost to EMA would help students with the reality of the cost of learning.
He said the increase would be in place for the next two academic years while the review of EMA is conducted.
Miles added that there will be funding to allow more students from poorer backgrounds to appeal exam results for free in summer 2023.
National Union of Students Wales president, Orla Tarn said the union was pleased the government had taken measures to stop young people being priced out of education.
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