Thousands more students in England are to be entitled to university maintenance grants, the Government has announced.

However, it will only apply to students starting next year.

From 2008 two thirds of students will receive a maintenance grant, compared to just over half now. The Government hopes the new measures will ensure that all people with the potential and qualifications have the opportunity to participate and succeed in higher education, whatever their background.

The £400 million boost will see an increase in the number of students entitled to non-repayable maintenance grants from 2008/09. Full-time students from families with incomes of up to £25,000 will be entitled to the maximum grant, compared to the 2006/07 threshold of £17,500. Students from families with incomes of up to £60,000 will also now be entitled to a partial grant, meaning a third of students from 2008/09 onwards will now receive a full grant and a further third of students will receive a partial grant.

The Government will also offer graduates increased choice over how their student loans are repaid. Graduates will have the option of taking 'repayment holidays' at a time of their choosing, for up to 5 years in total.

The Prime Minister, Gordon Brown said: "These changes, giving more financial support to those who want to learn and improve their skills, will help even more young people fulfil their ambitions for a university education."