Richard, in the days when Mike went to uni, it was as he said grant aided. Said grant was not automatic, and was still means tested.
However the salient point is this, in those days there were only about 48 "Universities", whereas now there are over 400, (alleged) universities. Since it was decided to turn everything including the local toilets into a university, (Pee HD?)the grants required overtook the budget allocated, and therefore charges had to be made. I agree that it's sad that it's come to that, but it has been the norm in many countries for years, and people still managed to get through their courses.
Unless of course you'd rather they upped your taxes to pay for it ;)