The late-night sitting saw 31 Labour MPs defy the whip and vote against the government while 15 more abstained.

The vote was returned as 176 for the amendment and 313 against - a government majority of 137.

The opposition came during the third and last reading of the Teaching and Higher Education Bill in the House of Commons.

MPs were also due to vote on £1,000-a-year tuition fees but the debate ran out of its allotted time. MPs only got the chance to vote on the tabled amendment to the system of maintenance grants laid out in the Bill.

Tony Benn speaks in favour of the amendment

The vote came at the end of a six-hour debate. But crucially, before the debate started, the government made three consecutive statements in the House. Then during the debate, several MPs made lengthy contributions in favour of the government's position.

This meant the last two amendments that were to be dealt with, both on tuition fees, could not be debated as time had run out.

The amendment that was voted on, and rejected, would have saved maintenance grants.

Earlier in the evening MPs also voted to reject a Tory amendment tabled to change the so-called "Scottish anomaly" which distinguishes between students who live in Scotland and go to Scottish universities and other UK residents who attend Scottish universities.

Tony Benn eloquently led the pro-amendment debate

It was backed by left-wing Labour backbenchers such as Tony Benn and Jeremy Corbyn. They saw it as a chance to defend maintenance grants and had joined protesters earlier in the day by comedians, pop stars and students groups in submitting a letter to the Prime Minister urging support. At one stage Mr Corbyn asked what kind of an incentive it was for a person from a poor background to apply for university if he or she knew they would leave £10,000 in debt.

Secretary of State, David Blunkett

The Labour rebels were supported by the Opposition. Tory education spokesman Damian Green (Ashford) said the government was "throwing out the baby of common decency with the bath-water of socialism - betraying the sense of common decency which brought many of their own number into Parliament in the first place".

But the government remained behind the Bill as proposed.

Although the Secretary of State, David Blunkett, made concessions to the rebels earlier in the day by announcing a £143m package of support for higher education, he was scathing during the debate.

Mr Blunkett : "The manifesto committment was absolutely explicit..."

He insisted the vote was not on fees. "We are talking about ensuring that students have the money at the point they need it and they repay at the point they can afford to repay it.

"It is for a modern Britain, in a new century that we're asking people to vote against this amendment."

Who ignored the whip:

Those who rebelled to vote for the rebel amendment to retain students' maintenance grants were: