STUDENTS at the University of Central Lancashire (UCLan) will have more money to spend in Preston's shops and bars next year after the introduction of top-up fees.

More than 90 per cent of the university's 16,000 full-time graduates will be eligible for a grant of £1,000 a year for three years to pay for tuition fees.

Less well off students will also receive more than £4,000 in means-tested student loans.

The university will also be setting aside 55 per cent of its extra fee revenue, equivalent to £5million, for bursaries, far more than the 10 and 30 per cent of the income most other colleges are contributing.

The grant called the Ones to Watch Scholarships, is £700 above the minimum bursary required under Government guidelines, and will be given to all UK undergraduates where their parents' income does not exceed £60,000 a year.

Preston's city centre manager Graham Penticost says it will not only be good news for students but also for businesses across the city. Mr Penticost said: "Money is always tight for students and I am sure the windfall will be gratefully received.

"This is good news for the city, and business across the board, and quite a few people will benefit."

UCLan vice-chancellor Malcolm McVicar, said: "We are committed to providing the opportunity for everyone, to go to university regardless of background or financial situation."

Bryn Davies, president of the UCLan Students' Union, said: "We believe that the university is correct in its decision to provide students with money when they need it most - while they are studying."