New offer on top-up fees

Charles Clarke today unveiled a £500million package of concessions in a desperate bid to rescue the Government's university tuition fee reforms.

The Education Secretary promised students from poorer backgrounds bigger loans and grants of £1,500 towards their living costs at university. Debts outstanding after 25 years would be written off.

He announced the concessions in a bid to defuse a backbench

rebellion threatening to wreck his Higher Education Bill and undermine Tony Blair's authority.

But the last-minute moves looked unlikely to persuade a hard core of about 100 Labour MPs to support the plans when they are debated later this month - more than enough to bring a humiliating defeat.

The concessions came as Mr Clarke announced details of plans to allow universities to charge variable fees up to a maximum of £3,000 a year.

Mr Clarke warned Labour MPs they could not defeat variable fees without wrecking higher grants for poorer students.

He told the Commons: "If not supported by this House, none of these benefits will arise. It is not a pick-and-mix menu."