ED BALLS, the children’s secretary, has been forced to soften his demands that faith schools change their admissions policies.

Jim Knight, Balls’s deputy, moved to defuse the row when he told a delegation from Jewish schools that ministers would consider changing the legal code governing admissions to “maintain the concept of equity whilst meeting the need to clarify how we define the ethos of [a religious school]”.

Religious groups claimed they were unfairly singled out by Balls when he accused dozens of schools of breaching the code, which is designed to prevent “backdoor selection” of middle-class children.

Those at the meeting last Thursday said Knight also talked of changing laws that prevent oversubscribed schools from admitting children only of their own faith, saying: “It is important that you [Jewish schools] preserve your ethos” and “are able to promote strong family values”.

The hour-long meeting, held at the offices of the Board of Deputies of British Jews in London, was described by Winston Pickett, a spokesman for the board, as a “frank and open interchange”.

Michael Gove, the shadow children’s secretary, described the concessions by Balls and Knight as “not a total retreat, but definitely a climb-down”.

“There was a miscalculation and an acknowledgment they had to retreat because they did not have their facts straight,” he said. “For ideological reasons, though, they are still intent on making schools the villains in the admissions process.”

The row erupted earlier when Balls accused dozens of schools from Manchester, Northamptonshire and Barnet, north London, of breaking the code. He claimed some were “asking parents to commit to making financial contributions as a condition of admission”, putting off poor families. Ministers said the abuse was a national issue and “shocking”, although they were able to name only six schools that linked payments to admissions.

Most of the accused schools turned out to be religious and Balls was accused of a “witch hunt” to pander to the left, many of whom see faith schools as middle class strongholds.

The attack on Balls was joined last night by Frank Field, the reformist Labour MP, who called the criticism of faith schools "incomprehensible ... near-criminal" and "a rant" designed to position the schools secretary for the next leadership contest. He called on Gordon Brown to "rein him in".

Parts of Balls' claims came unstuck last weekend when it emerged that only about a third of parents at some of the schools made the voluntary payments. They are intended to subsidise religious education, security and refurbishments, but it is illegal to link them to admissions.

It also emerged that many of the admissions criteria criticised by Balls’s officials had been drawn up before the code came into force last year and had already been amended.

Although most schools have now changed their codes to meet the deadline on Tuesday, religious groups are particularly angry that they are not allowed to ask parents whether they support a school’s ethos.

They argue that this information is vital to preserve a school’s distinctive character. Labour’s code bans it as it may be interpreted as a request for financial support. It is also seen to favour articulate parents.

“It has become absurd, it has come down to arguing over one person’s interpretation of the word ‘support’ against another’s,” said one Catholic head teacher, adding: “They should think hard before they pick a fight with us over angels dancing on pin-heads.”

Knight said yesterday: “The Board of Deputies and the government are committed to ending unfair admissions practices . . . we look forward to working with them.”

The government is not relaxing its approach to enforcement of the code. Philip Hunter, the schools adjudicator, has written to every education authority demanding signed assurances that they will force schools to comply with the code.

Hunter has also taken on a team of barristers to vet policies and told councils “we will expect you to use your powers to object” to any policy deemed noncompliant by the lawyers.

Paul Barber, education officer of the Roman Catholic diocese of Westminster, called Hunter’s approach “ heavy-handed”, but a YouGov poll for The Sunday Times suggests that many voters are sympathetic to Balls.

It finds 38% believe that faith schools are being undermined by government statements, but these are outnumbered by the 50% who agree with the statement: “[Balls] is right to get tough on schools that erect hidden barriers that discourage poorer families from applying”.

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