Universities are to get more money for taking students from poorer backgrounds.

The Higher Education Funding Council for England has increased funding fivefold to £265 million, with £155 million allocated according to A-level grades and other entry qualifications.

The council insisted this did not mean institutions were being rewarded for taking second-rate undergraduates. It said they were being reimbursed for the costs of providing services, such as counselling, to encourage students most at risk of dropping out to complete their courses.

While England has the second lowest drop-out rate in the world and the highest degree completion rate, wastage from some courses can be as high as 45 per cent.

Many so-called "non-traditional" undergraduates leave before the end of the first year.

Tuesday March 11 2003