PM facing attack on top-up fees

Tony Blair faced fresh Labour in-fighting today as rebel MPs renewed their assault on his plans for top-up tuition fees.

Backbenchers led by Dr Ian Gibson put down a hostile amendment which would effectively wreck the Government's proposals to reform higher education funding.

Their move threatened to land Mr Blair in another bitter row with large sections of his own party, at a time when Labour is moving on to election footing following last week's Budget.

In a knife-edge vote in January Mr Blair avoided defeat by just five votes, when 72 of his own MPs voted against the Government.

His victory, by 316 votes to 311, was the closest he has come to losing in the Commons during his seven years in Downing Street.

Dr Gibson's amendment is likely to be voted on when the Higher Education Bill comes to the Commons for its third reading, probably next week.

Rebel organisers have written to every backbench Labour MP asking for their support.

Under Government proposalsuniversities would be allowed to charge variable topup fees of up to £3,000 per student per year. Graduates would start their working lives with debts of at least £15,000.

Ministers hope a market in courses would be created, with the most prestigious universities charging the full fee while rival institutions were able to undercut them with lower prices..

However, critics claim that the changes will lead to a twotier university system, with only students from high-earning families willing or able to apply to Oxbridge and other top universities.

The effect of Dr Gibson's amendment would be to halt the top-up fees, while leaving in place the sweeteners introduced by ministers to make the package palatable to Labour MPs. However, ministers were understood to have warned some potential rebels that if the amendment went through, the whole Bill would be withdrawn.