Sir Alan Langlands has been appointed head of an inquiry into the impact of increased tuition fees on recruitment in the public and private sectors.

However, his investigation will not begin until after the controversial Higher Education Bill receives Royal Assent, and will not report until the middle of next year.

Under the proposals, universities will be free to charge up to £3,000 a year for their courses, with up to £3,000 a year in grants available for the poorest students.

They will not come into effect until 2006.

Sir Alan, who is vice chancellor and principal of the University of Dundee, will examine how public and private sector organisations will be able to sustain and improve recruitment opportunities, particularly for graduates who do not qualify for the full support package.

The inquiry will be conducted through two reference groups.

The public sector group will examine the current system of bursaries and "golden hellos" available, their effectiveness, and what plans there are for after implementation of the new student finance system.

And the group examining recruitment in the private sector will research current incentives available to graduates both nationally and internationally, and how employers are likely to respond to the changes in 2006.

The move is one of a series of concessions made to Labour backbenchers during the second reading of the Bill, which saw the government's majority slashed from 160 to just five.

"When we published the White Paper in January 2003, we said we would look carefully at how best to continue attracting high quality recruits to the public sector and the professions," said education secretary Charles Clarke.

"I am delighted that Sir Alan has agreed to lead this important work. His vast experience in the public sector and professions will be invaluable.

"I look forward to receiving his report later next year which will have to be analysed within the context of the next spending review."