The government will amend the Higher Education Bill to protect students opting for a gap year in 2005, universities minister Alan Johnson told MPs yesterday.

Students would pay the existing £1,125-a-year fee, capped for the duration of their studies, he said.

The Times says that Labour MPs did not want to defend the fees to parents whose children faced record competition to get into top universities during an election campaign.

The concession will save students up to £6,000 and allows youngsters to press ahead with plans for a gap year in 2005.

A spokeswoman for Universities UK, which represents vice-chancellors and principals, said the move will "stop the bunching of applications".