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Last Updated: Thursday, 8 January, 2004, 23:41 GMT
Mixed rebel reaction to fee plans
Students in a lecture theatre
Tony Blair insists students must contribute more money
Concessions on the controversial plans for university top-up fees have won over some Labour rebels, but left many others pledging to oppose the scheme.

Students from the poorest homes will receive up to £3,000 a year to meet the costs of university fees under plans unveiled by the education secretary.

Outlining the plans in the Commons, Charles Clarke told MPs to take the whole package or none of it.

He has refused to budge on allowing fees to vary between universities.

Students whose families earn £15,000 or less will be eligible for the full £3,000 cash help.

Facing potentially his largest rebellion to date, Tony Blair has said his authority will be "on the line" when the plans go to a Commons vote expected later this month.

Mr Clarke told Channel 4 News the government's authority would be weakened by a defeat but it was not a "resigning matter".

"We won't lose the vote," he added.

PLANS AT A GLANCE
Existing upfront fees end 2006
Fees then vary - up to £3,000 a year with repayments once graduates earn £15,000+
Students from poorest homes to get up to £3,000 of help a year made up of:
- £1,200 fees subsidy
- £1,500 means-tested grant
- £300 university bursaries
Means-tested £1,000 grants from 2004 rising to £1,500 from 2006
Low-interest student loan up to £4,000 a year
Loan and fee debts written off after 25 years
New access regulator

But leading rebel Ian Gibson predicted "well over 100" Labour MPs would oppose the plans.

As his persuasion drive continued, he privately took questions from Labour backbenchers on Thursday evening.

The plans only affect universities in England.

More than 150 Labour MPs have expressed concern about allowing different universities to charge different fees.

They believe young people from poorer backgrounds would be deterred from applying for the best - expected to be the most expensive - universities.

Universities will be able to charge up to £3,000 a year, with fee repayments beginning when graduates start earning £15,000 a year.

Under Thursday's concessions, the £3,000 fees cap will be fixed throughout the next Parliament and can only be changed after that through a parliamentary vote.

There will be an independent review to examine the scheme's impact after the first three years.

I thought it was unreasonable not to have a cap and £3,000 was a reasonable cap


Education Secretary Charles Clarke

Mr Clarke told BBC News he was confident the fees cap would remain at £3,000 - adjusted for inflation - for at least 10 years.

"Very many" universities already wanted to charge more than £3,000 a year, he said.

But Mr Clarke added: "I was not prepared to do that.

"I thought it was unreasonable not to have a cap and £3,000 was a reasonable cap."

The proposals would allow universities to "continue to be the world-class institutions they need to be", he said.

Rebel numbers

Labour officials have given a list of five rebel converts - although two of the MPs named had not signed the motion expressing concerns.

Former minister Keith Vaz told BBC News 24: "This is enough to allow me to vote for the government, although it was touch and go until I heard what he had to say."

Others say they are encouraged by Mr Clarke's plans but undecided on how to vote.

But there remains a group opposed to the concept of variable fees, despite the new package.

Have ministers done enough to spare the prime minister a potentially fatal defeat?

Ex-chief whip Nick Brown said: "It doesn't deal with the remorseless logic of having the fees go up at the most prestigious universities and the youngsters from ordinary backgrounds just to be priced out of these courses."

In the Commons, Mr Clarke argued: "No student from a poor background will be worse off as a result of our proposals - whichever university they attend and whatever the fee charged for the course."

A new living costs grant of up to £1,000 is already being introduced from 2004 on a sliding scale for those with family incomes below £21,185.

This grant will now rise to up to £1,500 from 2006.

Any student loan outstanding after 25 years would be written off.

'Triple whammy'

In a sign there would be no further concessions, Mr Clarke said the package was "to be taken as a whole or not at all".

Conservative shadow education secretary Tim Yeo asked why anyone should believe the promise to keep the £3,000 cap when tuition fees were the result of a broken election promise.

HAVE YOUR SAY
I see nothing but endless money problems
Carrie, UK

He condemned the plans as a "triple whammy - bad for students, bad for universities and bad for taxpayers".

Liberal Democrat education spokesman Phil Willis said the plans flew in the face of Labour's founding principles.

He argued they would "pull up the ladder of opportunity for thousands of poor students for generations to come".

Michael Sterling, chairman of the Russell Group of 19 top universities, told BBC News Online: "We support the proposals. They are carefully crafted. They don't give us everything but it's sufficient to be a step forward."

Professor Ivor Crewe, president of the Universities UK group of vice-chancellors, called the bill a "milestone" in the future of higher education.

"It strikes a fair balance between the needs of institutions and students," he said.




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