The city council's Executive Board is being asked to approve the ground breaking proposal, which will benefit around 12,000 pupils aged 16-19 from September 2009.

The £360,000 scheme - provisionally titled 'Stay on in Liverpool' - is aimed at making sure that each Year 12 and 13 student is able to buy the equipment needed to get their academic year off to a flying start.

Lib Dem Council leader Warren Bradley said: "Liverpool's future success hinges on making sure that our young people get every chance to reach their full potential, regardless of their background or the income of their parents.

"As a parent myself, I am acutely aware that books, art equipment and stationery can be hugely expensive and act as a disincentive when youngsters are deciding whether or not to continue their studies.

"This bursary will make sure that every sixth form student has the opportunity to go out and buy the materials which they need."

The city council is brokering a deal with top stationery firm Office Depot to offer substantial discounts, meaning that pupils will be able to get far more for their money than they would on the high street.

Councillor Keith Turner, executive member for education, added: "These are tough economic times and every single penny counts for families.

"This scheme will make sure that mums and dads won't have to worry about having to find the cash to fork out for essential equipment.

"We already have the best ever GCSE exam results in Liverpool, and the bursary will help post 16 students get the best possible start to their further education."

Pupils will have to claim their entitlement via a special website during the first half term of the academic year.

The website will also include links to information relevant to their lives, such as careers, health advice and information about positive activities.

All equipment will be delivered to schools and colleges to make sure it gets to pupils and the system is not abused.