Applications to British universities rose by 2.7 per cent in the last year, despite the continuing row over top-up fees.

Figures released on Friday by the Universities and Colleges Admissions Service (UCAS) show that 437,615 applications to enter higher education were received in the period up to June this year.

As the government faces continuing opposition over plans to introduce top-up fees, ministers will be boosted by the news that applications have continued to rise.But the figures may deal a blow to ministerial attempts to gloss over the impact that increasing student debt has on applications.

The UCAS statistics suggest that the highest rise in applications came in Scotland where students are exempt from tuition fees until they start earning.

In Scotland the number of people applying for higher education rose by 2.9 per cent, whilst in England and Wales, applications rose by only 1.5 and 1.1 per cent respectively.

The government target to have 50 per cent of people under 30 educated to degree level by 2010 also received a boost from Friday's figures, which suggested that controversial two-year foundation degrees have proved popular with applicants.

The shortened courses have had a mixed reception, with the government accused of introducing sub-standard degrees in a bid to meet their own targets for university take-up.

But higher education minister Alan Johnson insisted the foundation degrees were a vital part of equipping young people for their working lives.

"It is absolutely right that we focus growth on a qualification that is designed with employers and which gives graduates the direct skills needed in the workforce," he said.

And the government will be further boosted by the sharp rise in the number of overseas students applying to UK universities.

Ministers have sought to buttress their arguments in favour of top-up fees by saying that British universities need greater funding to compete in the global education market place.

The number of applications from overseas students has risen by 10.9 per cent in the last year, with a sharp rises in numbers particularly from Nigeria, up by 71.4 per cent, and China, up by 36.2 per cent.

Anthony McClaran, UCAS acting chief executive, said the number of foreign applicants was testimony to the strength of British higher education.

"The increases in overseas applications are very encouraging. Despite significant competition from elsewhere, UK higher education, with its great diversity of courses and universities and colleges, continues to attract international applicants in ever greater numbers," he said.