Tony Blair insists students must contribute more money

Charles Clarke said the government will not be offering a "major change" to the plans - despite some fierce opposition.

He said it was time for MPs "to choose" whether they wanted to face up to the reality of university funding.

He expressed confidence that he will win over enough Labour rebels to avoid defeat in the vote on the plans.

'No pick and mix'

Mr Clarke spoke out after he announced a series of concessions to help poorer students - a move designed to win Labour backbenchers' support.

But he has refused to budge on allowing fees to vary between universities.

Students from the poorest homes will receive up to �3,000 a year to meet the full costs of university fees.

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 Q&A: Tuition fees Scottish fears on fees impact Threat to Welsh funds

Those whose families earn �15,000 or less will be eligible for the cash help.

Mr Clarke told BBC Radio 4's Today programme the MPs had a stark choice.

"I do think it is right to say it is not a pick and mix menu because the university system of this county, which is one of the best in the world and has a tremendous record, needs to know where it is going in the future," he said.

"That means facing up to the circumstances, not least on funding which are involved in that area.

"I say that my colleagues in Parliament, by the way of all parties, have to face up to those circumstances."

'Scope for refinement'

But he warned the government would not be budging any further in any fundamental way.

I feel I have behaved with honour in the process of trying to bring forward proposals Charles Clarke

"If anybody has a belief that there is going to be any major change between now and Second Reading and thereafter, there won't be from our point of view because people have to choose."

However, he added: "There is always scope for refinement but there is no scope for fundamental change in the package."

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 said he accepted that the government's authority would be "very, very seriously" damaged if it lost the vote, but added he did not see it a Commons defeat as a resigning issue for himself.

Have ministers done enough to spare the prime minister a potentially fatal defeat? Analysis: Battle joined over fees

"I'm not [going to quit] no because my job runs across the whole range of education and the whole different area.

"I don't think that is the right way to look at it ... I feel I have behaved with honour in the process of trying to bring forward proposals, listening to what people say."

Tony Blair's official spokesman insisted the Cabinet were united behind the plans and denied the prime minister had been seeking to distance himself from the flagship bill.

Mr Blair was not in the Commons for Mr Clarke's statement on Thursday and his name does not appear on the front of the bill.

But his spokesman said it would be a mistake to read too much into either fact.

Deterrent?

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

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

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.

HAVE YOUR SAY I see nothing but endless money problems Carrie, UK Send us your comments

Mr Clarke said he was confident the fees cap would remain at �3,000 - adjusted for inflation - for at least 10 years.

But former Agriculture Minister and chief whip Nick Brown, said the pressure will be remorseless to lift the cap on the fees that universities can charge.