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Universities are providing more financial support to students form the poorest backgrounds although the amount of money given to individuals is decreasing, according to a report.
The Office for Fair Access (Offa) said in its latest monitoring report that universities spent just over a quarter (25/6 per cent) of the extra income they receive from tuition fees on access measures in 2008-09.
Universities have to show they are acting to widen access if they want to set fees higher than the basic level.
Overall English universities received an additional fee income of £1.3bn in 2008/09, up from £878m in 2007/08, the report found.
The basic fee stood last year at £1,255 while the maximum fee universities could charge for new entrants set at £3,145.
Figures showed that take-up of bursaries among the poorest students rose to 96 per cent, up from 92 per cent the previous year.
But the average among per applicant was down to £942, compared with £1,019 in 2007-8.
A total of £304m was spent on bursaries and scholarships for students from low-income backgrounds and from other under-represented groups.
The universities spending the highest proportion of their additional fee income on bursaries were Thames Valley University (41 per cent) and the University of Cumbria (40.1 per cent).
Those spending the smallest proportions were Middlesex University (7.7 per cent) and the University for the Creative Arts (10.1 per cent).
Universities minister David Willetts said he was "extremely pleased" with the increased take-up rate of bursaries for those eligible, noting the considerable improvement since access agreements were introduced.
"Widening participation in higher education is a key aim of the coalition, and bursaries are one way of achieving this, he said.
"However we must not be complacent. Awareness of bursaries amongst prospective students remains an issue.
"This report underlines the importance of transparency in providing clear information for prospective students, who can see how universities are meeting their obligations to provide bursaries to those who need them most."
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