The Education Maintenance Allowance (EMA) program was developed and offered in 3-year pilot projects that were designed to test whether extra funds would encourage more of England's young people from low-income families to participate in full-time education and training, stay on course for the duration of the program, and achieve their qualification aim. The EMA program's effectiveness was examined in an impact study of EMA recipients at six schools and further education (FE) colleges. Data were collected through questionnaires to program coordinators at each institution, follow-up telephone interviews with the program coordinators, and a site visit to one of the FE colleges. An update questionnaire was also e-mailed to institutions examined in the previous year's pilot study. All the institutions welcomed the EMA's introduction as a way of improving retention, and its positive effects on retention were already beginning to be evident at the time of the study. However, evidence of the EMA's impact on achievement was emerging only slowly. Several concerns regarding the EMA were raised, including concerns that the EMA increases institutions' administrative workload and may result in a reduction in learner support funds. However, the EMA appears to have assisted well-qualified students to enter FE and may have encouraged recipients to remain in school. (MN)