About half of England's under-16s will be able to get cash in return for staying on at school from September.
The new scheme is aimed at those with families who have lower incomes.
It means that some under-16s could be paid up to £30 a week, which would go straight into bank accounts.
The government said the idea, costing £500,000 million a year, will encourage teens to stay on at school or college. The UK has one of the worst records for keeping teens at school after 16.
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