The government has insisted that universities will not be allowed to charge top-up fees above £3000.

Charles Clarke rejected calls from some universities who want to levy additional fees to £5000.

He said it was not "inevitable" that every course at every university would come with a £3000 price-tag attached.

The education secretary also warned that universities which collude to keep fees high could face fines under competition laws.

He also rowed back from the government's target of seeing half of all young people going into higher education by 2010.

Clarke said tens of thousands of young people could instead study for two-year "foundation degrees".

And he signalled that the neediest students may be exempted from top-up fees altogether.