I saw an advert on the telly yesterday, for this allowance, and went to their website.
http://www.dfes.gov.uk/financialhelp/ema/It appears to be a financial incentive for 16 year olds to carry on in school, for those with families that make less than £30,000, paying £10-£30 a week to the student (dependant on income), starting from Sept 2004, with bonuses of £100 for continuing.
Who's eligible: UK nationals, those with Indefinite Leave to Remain, and some qualify from EEA/EU countries.
Visit the site for details and info pack.