EDUCATION Secretary Charles Clarke has flatly rejected York MP Hugh Bayley's alternative to student "top-up" fees.

Mr Bayley has suggested a flat-rate increase in the £1,100 fee paid by all students who can afford them.

He argues this is a fairer way of pumping extra cash into higher education than allowing elite universities such as York to charge students up to £3,000 per year.

He was one of more than 70 MPs who signed a Westminster motion stating top-up fees could create a "two-tier" education system.

But speaking in Bournemouth as the Labour conference was getting under way, Mr Clarke rejected the concession.

"Is it true that a degree from university A is identical to a degree from university B? Or course A compared to course B?" he said.

"It is not true. The fact is different universities, different courses, give better opportunities later in life. It is not unfair to have a fee system that reflects that."

He added: "We are not talking about a flat rate, no. I know some of my colleagues support it.

"We are talking about a variable rate."

Mr Clarke again said the Government was examining refunding all fees to the poorest students, but ruled out any commitment this week.

"We are looking at that possibility," he told BBC1's Politics Show.

"We are discussing with universities, we are looking at how the bursary systems would work.

"I certainly don't rule out doing what you have just said but am I going to make a commitment to it this week? No I am not."

Mr Bayley has insisted top-up fees could deter youngsters from attending universities such as Cambridge.

He said bright youngsters may instead opt for universities which decide against charging the increased tuition fee.

Mr Bayley said today: "If fees rise faster at the best universities the gap between the best and worst will widen. I want all students to get the best quality education."

Asked if he would urge Mr Clarke to think again, Mr Bayley said: "I have made my views on this well known."

Updated: 12:20 Monday, September 29, 2003