First of the elite Russell Group of top universities to charge less than the maximum fee
The London School of Economics has become the first Russell Group university to declare that it will not charge the full £9,000 tuition fees next year; instead the annual tuition fee for UK and EU undergraduates will be £8,500.
A close vote from the LSE council has determined the new fee, with 67 members voting to charge the £9,000 fee and 68 members against it.
An LSE spokesman said that the fee sent a "clear message" that it welcomed students from "all backgrounds".
The fee takes into account "arguments of principle", said a statement released by the university said.
Professor Judith Rees, LSE director, said: "We are determined to preserve academic standards and ensure that all students with the ability to benefit are not deterred from applying to LSE.
"In recent years we have put a great deal of resources into widening participation activities and are delighted that we can now expand these.
"Our new fee package allows us to provide exceptional value for all students while continuing to target funding on the poorest."