Ministers rebel over top-up fees

Opponents of Tony Blair's plan to allow elite universities to charge higher tuition fees have forecast resignations from the Government when the legislation comes before the Commons. The plan to introduce variable fees is expected to be the single most controversial item in the Queen's Speech later this month, which will lay out the Government's programme for the coming year. Legislation is expected to be introduced in the Commons before Christmas.

Last week, the plan came under fierce criticism at a private meeting of Labour MPs, addressed by the Education Secretary, Charles Clarke. One of the critics was Dari Taylor, a parliamentary private secretary (PPS) in the Home Office, who complained that it could revive the old distinction between universities and polytechnics. A fellow Labour MP, Martin Salter, who does not hold a government position, is reported to have described the proposed legislation as a recipe for "debt, discrimination and dishonesty". One leading opponent of top-up fees, who asked not to be named, said: "I have had conversations with middle and junior ranking ministers who are bemused about why 10 Downing Street is going ahead with this. I know of PPSs who have threatened to resign, and I can confirm that ministers from Minister of State level downwards have been expressing their concerns."

Douglas Alexander, the Cabinet Office minister in charge of election planning is said to have warned Tony Blair that the party's polling evidence shows widespread public hostility to variable fees. Estelle Morris, the former Education Secretary, who is now back in government as a culture minister, opposed the idea when she was in Cabinet. Other parliamentary private secretaries besides Mrs Taylor have signed protests against variable fees, though some may have changed their minds after being promoted in the most recent government reshuffle. They include Stephen McCabe, who is now Mr Clarke's parliamentary aide. Others are Peter Bradley, who is now based in the Environment department, David Borrow, at the Transport department, Ashok Kumar, at International Development, and Tom Watson, now at the Treasury.

The rebels are expecting to be joined by a majority of former Cabinet ministers still in the Commons, including Robin Cook, Clare Short and Frank Dobson.

But Mr Clarke has been conducting an intensive campaign to win over doubting MPs. His case is that it is unrealistic to think that the universities are going to get the huge increase in funds they are demanding from general taxation, and the policy has now been designed so that no fees have to be paid until after graduation, no graduates will be saddled with debts they cannot afford, and that grants and bursaries will make it possible for students from very low income families to pay no fees at all.

The system under which graduates will repay the cost of their education will be similar to a tax. They will pay nothing on the first £15,000 of their annual income, and £8.65 a week on each £5,000 on their annual income above that. But unlike a tax, the payments will last only until an individual's debt is repaid.

Critics of the scheme say that higher fees will frighten working class children away from the top universities, because of the fear of debt. They also claim that it makes Labour appear dishonest, because of a clear promise included in Labour's last election manifesto that the Government would not introduce top-up fees.