Huge university fees were blamed today for the small increase in the number of state sector pupils entering higher education.

As the university performance indicators were released, teaching unions warned that people from poorer backgrounds were still being put off from attending university -- a situation made worse by the spectre of top-up fees.

Margaret Hodge, minister for lifelong learning and higher education, said she wanted to see more progress by the best institutions following an overall increase of around one per cent in state sector students entering higher education between 1999 and 2000.

At Durham University, 62 per cent of students were drawn from the state sector in 2000-2001, while at Newcastle University the figure was 68 per cent, compared with a national average of 86 per cent.

At the former polytechnics, 97 per cent of students from Sunderland University came from state backgrounds along with 98 per cent at Teesside and 89 per cent at Northumbria.

But drop-out rates were lowest at Newcastle and Durham -- both five per cent -- compared with 14 per cent at Sunderland, 10 per cent at Northumbria and 12 per cent at Teesside. The national average was 10 per cent.

All of the universities had good records for employment with figures well into the nineties.

Sally Hunt, general secretary for the Association of University Teachers, said students from poorer families were being put off by hefty tuition fees.

''Introducing top-up fees would only make the situation worse," she said.

But Durham and Newcastle defended their record for attracting state students and said their widening participation projects would see figures increased further in future years.

Professor Graham Henderson, Teesside University's Vice Chancellor designate, said: "The data is a very useful indicator and shows we are playing a major role in widening participation and providing opportunities for a wider range of people than many of the traditional universities."

A spokeswoman for Northumbria University said: "These indicators show Northumbria is doing well in continuing to attract people from areas of traditional low participation and supporting them through their studies to ensure they successfully complete their programmes."