Administrative problems have left thousands of teenagers facing delays to their student grants, it was disclosed.
Liberata, the company hired by the Learning and Skills Council (LSC) to administer the Education Maintenance Allowance (EMA) have had problems with their online systems and telephone helplines.
So far, just a small proportion of students are believed to have had confirmation that they will receive the grant, a £30-a-week payment for students aged 16 to 18 from low income backgrounds.
The scheme was set up by the Government to encourage more teenagers to stay in school after the age of 16.
Trevor Fellowes, director of learner support at the LSC, the Government agency with overall responsibility for the EMA, said there had been issues with the telephone helpline crashing, and recording a busy signal even though there were operators available to take calls.
A computer programme, due to be used for the first time this year, which would have allowed students to apply online, also had to be abandoned because it was judged to be not ready. There were also issues with a computer system designed to process applications, Mr Fellowes said.
He said 300 extra staff had been brought in to help with the processing.
Mr Fellowes said: "We are running at about half of what I would like us to be. That doesn't mean anyone is going to miss out. Anyone who has applied for EMA before their course starts or within 28 days are guaranteed to have all their payments."
It is policy to backdate all payments for applications received on time, he said.
Mr Fellowes added: "There is no getting away from the fact that some people's will be delayed because the processing has not worked as fast as we intended it to."
