The Medical Research Council is to raise its maintenance grant for students working towards their masters and PhDs to £10,000 a year and £12,500 in London.
The move is a bid by the MRC to remain competitive and attract top graduates. It follows grant hikes by the Wellcome Trust and exceeds government recommendations.
Other initiatives include 80 extra masters degree studentships, funded from 2003, and 15 salaried pre-doctoral fellowship appointments a year.