STUDENTS from poor backgrounds attending a North-East university are less likely to fail their exams than their wealthier counterparts, according to new figures.

Of 120 working class students attending Newcastle University, only five failed or had to re-sit their exams, an average of 4.2 per cent, compared with the university's average of 8.5 per cent.

The figures were produced as part of the organisation's Partners Programme which aims to attract youngsters from less well-off families.

Admissions staff may take working class students with three grade Cs at A-level instead of the traditional three grade Bs - but even so, their performance outshines their more wealthy counterparts.

Professor Christopher Edwards, the university's vice-chancellor, said: "What the figures show is that our system of assessing student applicants on the basis of their potential rather than their A-level scores is capable of improving equity of access to higher education.

"Given the chance, a student from a disadvantaged background can do just as well as one from a more conventional one."

Education Secretary Charles Clarke unveiled plans this week to penalise universities that do not ensure that a set number of students are from poorer backgrounds.

In the Government's White Paper on Higher Education published this week were proposals to charge students up to £3,000 a year tuition fees from 2006. Maintenance grants of £1,000 will be available to the poorest families.

Vera Baird, Redcar and Cleveland MP, said yesterday that the £1,000 grant was "nowhere near enough".

"The grant should be based on the national minimum wage and so should be at least £4,000 per year, she said.

She also called for action to prevent further education colleges continuing as the "Cinderella of the education service".

Students attending local colleges needed the same level of support as those who attended the old-fashioned universities, she said.