The government says it has agreed a deal with universities so all students who achieved the necessary grades will be offered a place at their first choice of institution.

Grants based on the numbers of students enrolled will also be made available to universities to increase teaching capacity as courses swell to bursting point.

But these will only be for “medicine, dentistry, veterinary science and teaching courses” that are “vital to the country’s social needs and economy”.

If courses are full, students will be offered a deferred place for next year.

It comes after the government announced students would be able to receive grades based on assessments by schools or colleges, rather than an algorithm, after thousands of results were downgraded on August 13.

Prior to the government’s U-turn, exam boards had downgraded nearly two-in-five (39.1%) grades in England, according to data from Qfqual – equating to about 280,000 subject entries being adjusted down after moderation.

A total of 35.6% of grades were adjusted down by one grade, 3.3% were brought down by two grades and 0.2% came down by three grades.

Universities minister Michelle Donelan admitted in a statement it had been “an incredibly difficult time for students” but added: “I want to reassure them that every effort is being made to make sure all those who planned to, can move on to higher education.”

She added: “This pandemic has highlighted more than ever the importance of our fantastic healthcare services and the need to invest in them.

“So I am pleased we are removing the cap on these courses and providing additional funding so more students can take up their places now and become our future doctors and healthcare professionals.”