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The piloting of Education Maintenance Allowance (EMA) initiative in 15 Local Education Authority (LEA) areas began in September 1999. The pilots, which will run for three years, are expected to test the extent to which a financial incentive improves post-16 participation, retention and achievement rates in education. This report focuses on the implementation and administration of the EMA pilot in its second year. Issues examined in this report include: the role of implementation groups; perceptions of EMA, particularly among training providers; general community awareness of the EMA initiative; the taking up of EMAs by income level, choices of curricula and education provider and the impact of EMAs on other post-Year 11 routes; mechanisms for administering EMAs; and the impact of EMAs on the attendance, retention and achievement of post-16 year old students.