Private sector boosted by fees increase

From next year when the cap on fees rises to as much as £9,000-a-year, 20,000 places will be ringfenced for higher education providers who can deliver courses for less than £7,500-a-year. This is expected to allow further education colleges and private providers to run more degrees.

Critics have said the Government has done this to restrict the amount it will need to borrow in order to fund the country’s tuition fee loans as the majority of state-funded universities plan to charge £9,000-a year.

However Universities Minister David Willetts said the reform package would “open up the system” and “put power where it belongs – in the hands of students”.

The latest Higher Education White Paper also includes plans to allow universities to compete for the most able students – allowing them to offer unlimited places to students achieving AAB grades at A-level or better.

Previously each university had a strict limit on the number of students that could be enrolled.