The government is failing to encourage more young people from working class backgrounds to enter higher education, a new report published today reveals.

According to the National Audit Office the number of university entrants from the lower end of the social spectrum remained at the same level between 1993 and 1999 despite a concerted effort by ministers to lift participation rates.

The report also finds that universities are losing over £150 million every year as a result of 30,000 drop out students.