Sixth form and college students from low income households will receive a £10 grant increase to help with travel and food costs, the Welsh government has announced.
The Education Maintenance Allowance (EMA) had been frozen at £30 for nearly 20 years.
The new higher payment is available from the beginning of the summer term.
But student representatives said more must be done to address further education costs.
Announcing the increase on Monday, Wales' education minister Jeremy Miles said there would also be a "comprehensive review" of the scheme.
