Extra money to improve higher education access

The rise, from �48m to �265m, is part of a �5.4bn package announced by the Higher Education Funding Council for England (Hefce) for the next academic year.

Universities will get a 20% premium for recruiting, and keeping, students from poorer areas or with lower than average qualifications.

Research shows undergraduates from such backgrounds are more likely than others to drop-out during their first year of study.

This makes them 30% more expensive to educate.

'Much to be done'

National Union of Students president Mandy Telford said: "Any cash into higher education is to be welcomed. We are especially pleased that this will help students from poor backgrounds.

"The government must make this its priority too. It must follow the good work of the funding council by reintroducing a decent living grant."

Lecturers' union Natfhe also welcomed the extra funding.

A spokesman said: "Much more still needs to be done to improve achievement and raise aspirations among school and college pupils so that they can go on to higher education.

"Universities must play their part by reaching out to a far wider range of potential students, and making sure they get the academic and other support they need to help them succeed."

A quarter of our nation's research staff have effectively been told that the government thinks they are of little value Sally Hunt, Association of University Teachers

The Hefce package also includes a �102m increase in funding for research, taking spending to �1,042m.

But the amount given to departments awarded grade 4 - below the top-rated 5 and 5* departments - has fallen by �21m to �118m.

Association of University Teachers general secretary Sally Hunt said: "How exactly does the government think this is going to impact on morale in the affected departments?

"A quarter of our nation's research staff have effectively been told that the government thinks they are of little value.

"The strategy of withdrawing funding from departments who have achieved national, and some international, excellence is very risky for a knowledge-based economy.

"Not only is it bizarre to 'reward' high achievement by putting at risk thousands of high achievers' jobs, but to do this while aiming to raise our global research standing is frankly nonsensical.

"This policy decision will seriously affect the security of over 1,000 departments and the jobs of their staff - a body blow to our national knowledge base in areas such as medicine, nursing and education."

But Hefce's chief executive, Sir Howard Newby, said: "The settlement will enable universities and colleges to take stock of their individual missions and build on their strengths.

"In some cases this may involve restructuring and in others greater collaboration with other institutions."