Students protest about fees

The legislation prompted fierce resistance among some Labour MPs and the government's majority was reduced to five.

The bill goes for Royal Assent after the Lords dropped previous objections.

Peers won a concession from the government for students planning a gap year in 2005 - they will not lose out when the charges come in in 2006.

Later, Education Secretary Charles Clarke welcomed the end of the battle to get the legislation through: "We have had a constructive dialogue throughout the passage of the Bill and I am delighted that the Bill has now received Royal Assent.

"The Higher Education Act will allow us to maintain our world class university education, while at the same time protecting access for students from poor backgrounds.

"This act marks a landmark in higher education. It gives universities an additional and much needed source of independent funding but in the fairest way possible.

"Added to the �10bn that the government will invest in higher education in 2005-6, it will provide universities with the funding they need to improve laboratories and lecture theatres, student accommodation and lecturers' salaries."

But Kat Fletcher, president of the National Union of Students, which opposed the bill, said: "This is a tragic day for the future of education in the UK.

"This government, having lied in its manifesto has betrayed students."

She added: "With a general election approaching, NUS and the student movement will never forget what has happened with this bill.

"We have no doubt that top-up fees will severely hamper the educational opportunity of the poor and disadvantaged in our society.