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Students should pay higher fees and get lower grants, a report for business leaders said today.
Employers' group CBI said students should also pay more for their loans, freeing funds for university teaching and research.
The Government's target for 50 per cent of 18 to 30-year-olds to go on to higher education should also be dropped, it said.
"Given the financial pressures, the focus must be on quality rather than quantity," it says.
Responding to the CBI-commissioned report, Universities Minister David Lammy did not immediately rule out higher fees but he insisted the 50 per cent target should remain, because it widened access to higher education.
The report comes after Nick Clegg said the Liberal Democrats may postpone its plan to scrap tuition fees because of the recession.
The National Union of Students branding its recommendations offensive.
CBI director general Richard Lambert said: "The world is changing. What seemed possible and affordable three years ago now has to be questioned."
Reader views (8)
Question everyone seems to forget - what is the return to British economy from the taxpayers' money spent on funding the proverbial 50%? And at what point did the law of diminishing returns kicked in? Any chance of ever introducing a merit-based access to higher education irrespective of ability to pay in lieu of the 50% entitlement?
- Legal Immigrant, London, 21/09/2009 22:01
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I miss John Major... He became PM at quite the wrong time really.
A very wise man tho and statesman like. Time to bring him in from the pale.
Politics these days seem a young man's game.. I tell you this.. it is not.
Nor is High-Politics like saturday night television. Be careful voters
Paully x
- Paul, Bromley, 21/09/2009 21:04
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What an incredible piece of hypocrisy from the capatains of Industry. take millions of our money to bail out their stupidity and they respond by trying to deny ordinary people of a decent education.
I say tax the wealthy until they squeal, pull out of foreign commitments, remove all illegal immigrants, scale down Trident, stop the charitable status of private schools ( ban them is better), stop faith schools, and put the money into educating our people, culminating in grants for all students who make it to Uni.
- Kerry, Purley, 21/09/2009 16:37
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Who will thank the government when 50% of 18-30 year old graduate with a degree that qualifies the holder to nothing more than average jobs at the bottom of the market and a debt of £30,000 or more?
It was far better in the 70's when only 10% went to university based on their merit alone and got a grant to finance it.
- Graham, Reading, England, 21/09/2009 13:00
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The problem is extremely esay to solve - halve the £6 billion overseas aid budget and use the money to abolish tuition fees.
- Rob, Rochester, 21/09/2009 12:57
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Michael's got it right, but it was John Major who upgraded Polytechnics. It is in the interests of the UK to have well-educated people: the country's most intelligent should have their degrees paid for by the Government - perhaps motivating them to do well by only paying the bill once a good grade has been achieved.
There is also a proposal to make the Middle Classes pay more for their degrees which is unreported in this article. It is unfair to have a grant-status judged by parental income: on this basis I did not get a grant (whereas my elder brother did) so was reliant on my parents paying for a degree pre student loan days - as they didn't want to pay for it, I didn't get one! The bottom of the whole policy is a lack of meritocracy, the belief that everyone should be a winner and that good old British thing of 'if I can't have it neither can anyone else!'. The Brightest and most able should be educated to the best possible standard irrespective of their financial background. When they undoubtedly get better jobs they will surely repay their loans with higher tax?
- Roz, France, 21/09/2009 11:33
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A big problem is that Universities see themselves as companies now. They take large percentages of foreign students and then say domestic students are not paying enough. They forget that they exist because domestic taxpayers pay for them. More of University budgets should be spent on teaching rather than vanity projects and spurious research.
- Mark, London, 21/09/2009 11:19
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This problem is not an easy one to solve. It dates back to the Thatcher era when Higher Education was seen as a route to massage unemployment figures amongst the young. This resulted in many very average polytechnics becoming universities whereas previously the right (to become a university) had to be earned and was very infrequent. To increase the number of students the dumbing down of degrees started together with a plethora of “new” degrees being offered. As more and more people did degrees it became impossible to fund them and fees were introduced. With their emphasis on “social engineering” Labour have only compounded the issue.
The situation needs a complete rethink. In reality degrees should only be fully funded (i.e. grants re-introduced) but only available to the top 15-20%. Obviously identifying these is not easy as ‘A’ levels have been dumbed down as well. Apprenticeships, day release, etc. would be more appropriate to many of the others.
The other problem to be solved in unwinding the degree industry. Many towns have now lost their manufacturing industries and now see themselves as university towns. The problem has to be addressed by all the parties and industry together. Throw away comments by the CBI and the NUS are of no help to anyone.
- Michael, London, 21/09/2009 10:54
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