What is the new policy on bus travel for under 16s in London from 1st January?

One the school newsletter, it stated that from 1st of january 2008 everyone from 11 - 16 will need an oyster card, the community suport police on the bus were discussing with me about it and with the bus driver, they said it would cause alot of grief. I didnt see it advertised anywhere, and on the bottom of the page there was something about a �20 fine. Then when i went to apply for an oyster cards, the man 'insisted' that i should come back on Monday (the day most schools go back in the borough) he said that the �5 admin fee would be removed and i would get them for free then gave me 2 more applications identical to the previous but green instead of blue. Are Transport for London trying to scam everyone, or is everything a coincidence or error. Why do 11 -16s need an oyster card if travel is still free. If there is no oyster card, will they have to pay �2 normal bus fee?