The school's original scholarship system allowed parents a 20 to 30 per cent reduction to the annual fees.

But now the school, which costs £6,870 per term to attend, has announced a bold move to change this existing scholarship system.

As from September 2005, scholarships at Rugby will cover just ten per cent of the fees, although everyone will be means-tested and there will be a chance of a possible 100 per cent reduction for certain families.

Director of Communications at Rugby School, Jonathan Smith, said: "The ten per cent reduction is just a token, if parents need more they can have it.

"It makes no sense giving reductions to the families that don't need it."

After the standard ten per cent fee reduction, which will be in recognition of the pupils' achievement, the remaining funds left over will be provided to those who need financial assistance in order to take up a scholarship place.

Head Master, Patrick Derham said: "This initiative will ensure we make the best possible use of the scholarship funds available.

"I hope it will encourage even more boys and girls to seek scholarship places at Rugby school irrespective of parental means.

"I am delighted we can widen access to our boarding education this way."

Mr. Smith added: "We want to reach out to the low income parents and make people realise that everybody can benefit from a Rugby education."

"This is a good move which we strongly believe in."