Oxford University is to re-examine its system of bursaries for poorer students in the wake of Government concessions on top-up tuition fees.

Registrar David Holmes made the promise as he broadly welcomed proposals by Education Secretary Charles Clarke, who wants to allow universities to charge up to £3,000 a year in tuition fees from 2006.

In a bid to appease Labour backbenchers and get the controversial Higher Education Bill through the House of Commons, Mr Clarke unveiled a range of grants to help those from poorer backgrounds.

Mr Clarke said students whose families earn £15,000 or less would be eligible for £3,000 a year in help -- a combination of the £1,500 grant, a £1,200 fee remission and a £300 bursary from their university.

Mr Holmes warned that Oxford, like other universities, would continue to face funding shortfalls.

He said: "We welcome the fact that individual institutions which are best placed to assess the needs of their students will be given the freedom to provide a financial support package to meet the particular requirements of their student body."

Mr Holmes said about 15 per cent of Oxford students received bursaries and the university would re-examine its bursary scheme in the light of the Bill.