Call to scrap student fees limit

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A think-tank is calling for the scrapping of limits on university fees - allowing universities to charge students thousands more each year.

The Reform proposals also call for a flat-rate voucher system to pay for university and vocational training.

The think-tank says it would give individuals more consumer choice.

The Conservative university spokesman David Willetts launched the report at an event in London - but a spokesperson distanced the party from the proposals.

The plans put forward by the public policy think tank are intended to scrap the "education maze" of options and funding mechanisms for university and vocational courses for young people after the age of 18.

University voucher

Instead the Reform plan, titled The Mobile Economy, suggests that young people would have access to one-off funding worth £13,000, available to all at the same level without any means testing. Accompanying this would be a student loan system.

There is also a controversial suggestion that universities should no longer have an upper limit on fees - creating a free market in charges.

A Conservative party spokesman said that this is not the party's policy and that David Willetts was not in any way endorsing the contents of the document.

University fees are likely to become politically sensitive approaching the next general election, particularly for middle-class voters.

Allowing a hike in fees could mean bigger student debts and more pressures on parents with student children.

But there have been calls from some universities for substantial increases. The report from Reform argues that the system of higher education and training should be more entrepreneurial - with greater independence for universities and more consumer power for learners.

It argues that further education colleges have "lost their sense of purpose" and that universities are constrained by their dependence on government funding.

"In successful education systems, individuals contribute to the costs of learning, institutions are self-governing and employers have responsibility for vocational qualifications," says the Reform think tank.

'Devalued'

In terms of a positive alternative, report author Laurie Thraves highlights employer-led qualifications, such as a course produced with the support of Network Rail.

In contrast, the report says that too often vocational courses have been "devalued" and that the poorest students get pushed into courses which offer them low financial returns in the workplace.

Mr Thraves says that the current system has many inequalities, with more prestigious courses often dominated by middle-class students, and that giving students the power to "buy" their own course will create more opportunities.

"We want to give individuals more independence and they will find their own way," he said.

The president of the National Union of Students, Wes Streeting, criticised the proposals as likely to disadvantage poorer students.

"Against the current economic backdrop, it would be extremely foolish to trust the provision of any major public service entirely to the market."

Universities UK said that there needed to be a serious debate about ways of funding universities - but it strongly attacked the approach set out in this report.

"What the funding debate needs is informed and thoughtful analysis and discussion, not the headline-chasing soundbites and outdated assumptions presented in this report," said a spokesman for Universities UK.

The proposals received a warmer welcome from the Russell Group of prestigious universities.

"International comparisons of universities have shown that the most successful universities are those that are allowed to operate independently - particularly those with autonomy over their budgets," said a statement from the group.