Hospitals are preparing to take millions of pounds from the pockets of newly qualified doctors, most of whom are still laden with debts from medical school.

New rules mean that from next month doctors in their first year of hospital training will no longer be entitled to free accommodation, which was formerly considered part of their salary.

The change represents a 20 per cent pay cut, the BMA conference in Edinburgh was told on Tuesday.

In a strongly worded resolution the BMA condemned the change and asked the Department of Health to think again.

The Welsh Assembly has already done so, announcing a change of heart on the morning of the debate.

Ian Noble, chairman of the medical students section of the BMA, called the new rules “a story of broken promises, dishonour and appalling judgment”.

Newly qualified doctors earn just over £21,000 a year. They have no choice but to take up a hospital position, because they cannot be registered as doctors until they have completed a year in such a post.

The change will affect about 7,000 students and on average they will be expected to pay £4,800 a year - a total of almost £3.5 million.

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