Charles Clarke has warned that a government defeat on the Higher Education Bill could could end any hopes of bringing back grants for poorer students.

The education secretary said ministers would withdraw the legislation if the government was defeated in the Commons vote tomorrow.

"It would mean no grants worth £2,700, no extra £1 billion for universities, no abolition of up-front tuition fees [currently £1,125 a year]," he said.

But Clarke is expected to offer further concessions in the run-up to the vote in a bid to avert a damaging rebellion.