With the rebellion over the government's top up fee proposals showing signs of breakdown, Labour MPs will today be presented a final concession.

Education secretary Charles Clarke will set out his proposals for students from the poorest backgrounds to receive a £1,200 sum, designed to offset the higher fees, before they begin their studies.Tony Blair will also address Labour backbenchers today, hoping to continue the momentum towards the government.

Ministers received a boost over the weekend when leading rebels Chris Smith and Peter Bradley announced they would back top-up fees.

The shift came as Michael Howard admitted that his policy of opposing tuition fees does not address the funding crisis.

He told BBC One's Breakfast with Frost: "The universities have a funding problem. It's been estimated variously at a £10 billion or £11 billion shortfall. And neither the government nor ourselves have any proposals to deal with that."