The Youth Opportunity Card, which will give teenagers across the country access to various discounts and services, could be delayed.
The scheme was announced by chancellor of the exchequer Gordon Brown in March. Mr Brown said that he wanted to give 13 to 19-year-olds access to services and discounts on the high street.
Part of the idea behind the card is to reduce anti-social behaviour among teenagers. The discounts would be worth around £25 per month.
However, the pilot scheme, which is due to begin in September, may not start on time because local councils don't have the technology to implement it.
The card will use smart card technology to give people access to the discounts, and the project's director has said that progress has been too slow in setting up the technology.
The pilot scheme covers 300,000 teenagers in 10 local authorities across England: Bolton, Cambridgeshire, Camden, Durham, East Suffolk, Lincolnshire, Liverpool, Nottingham, Sunderland and Tower Hamlets.
However, the Department for Education and Skills insists that the project will go ahead in the autumn. A spokesperson for the department told the Government Computing News that it is "working to ensure all the nuts and bolts are in place before we launch".

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