University funding delay raises fear of top-up fees

Charles Clarke, the new Secretary of State for Education, announced yesterday that a long-awaited review of higher education funding would be delayed to allow him time to settle in to the job.

The paper, which was expected to be published next month, is said to propose controversial options including top-up fees, a graduate tax and across-the-board rises in tuition fees. Mr Clarke announced the delay last night, a few hours after making his first speech since replacing Estelle Morris last week.

In the Commons yesterday Tony Blair refused to rule out top-up fees while he was Prime Minister, opening the way for moves to allow élite universities to set their own charges after the next general election.

Asked repeatedly to confirm that he would not introduce proposals to allow universities to charge up to £6,000 a year, Mr Blair insisted that he stood by Labour's manifesto pledge not to introduce top-up fees. But his spokesman refused to comment when asked whether that promise extended beyond the next election, saying: "The manifesto commitment stays. We are not at the stage of thinking about the manifesto for the next parliament."

Last night Mr Clarke said he would not rule out top-up fees because "my job is to look at the whole policy issues right across the whole range". He told BBC2's Newsnight: "In each of these manifesto commitments... top up fees is highly relevant."

But the Prime Minister faced opposition from his backbenchers after 63 Labour MPs signed a Commons motion warning that any move to introduce top-up fees would wreck attempts to attract more working-class teenagers into higher education.

The motion, put down by Ian Gibson, Labour chairman of the Science Select Committee, said top-up fees would create a two-tier system.

The Tory leader, Iain Duncan Smith, had challenged Mr Blair after Mr Clarke refused to rule out top-up fees in an interview at the weekend. Mr Blair replied: "We stand by our manifesto. But I don't believe the issue actually is top-up fees. The issue is how we make sure our top universities get the freedom and independence they want, how we make sure we realise that as those universities develop, that they should be able to guarantee access for the poorest students."

Sally Hunt, general secretary of the Association of University Teachers, said: "Top-up fees would lead to a two-tier system where people from wealthy families would go to the best institutions and those from poor backgrounds would be left to make do with second best."

Earlier, Mr Clarke had warned a headteachers' conference that a shortage of examiners threatened to plunge the exam system into another crisis next year.