star news: Universities to compete on places

University students are to be promised more information and consumer power

A planned shake-up of higher education in England is being set out later, with a promise of more competition and consumer power for students.

From 2012 universities could compete for places, including with the private sector, and be held accountable for the quality of their teaching.

A White Paper is promising to ensure "students get their money's worth" as they face paying higher tuition fees.

The government wants to encourage more market forces in higher education by promoting consumer choice and making universities more accountable to students paying higher fees.

This will include plans for inspections to be triggered if there are concerns about the quality of courses or teaching standards.

The White Paper will set the landscape for higher education at a time when many students will be paying tuition fees of £9,000 per year.

The overall number of university places is expected to be kept at about the current level but there will be measures to encourage more competition between institutions.

Universities will be allowed to create more places for the most talented applicants - those with at least grades AAB at A-level.

And it is expected there will also be more room for expansion for those universities willing to charge lower fees of around £6,000 per year.

But Labour's universities spokesman, Gareth Thomas, said this would be a "race to the bottom", designed to push down the overall cost of student loans, when many more universities than anticipated opted to charge the maximum fee.

Universities are also set to bid for a proportion of places above a "core" number - with the expectation that it will create an opportunity for more private providers.

At present there are only five private bodies in England with degree-awarding powers - but it is expected that this could increase.

And there are plans to remove barriers to new providers, which could mean more private institutions being set up or partnerships between public universities and the private sector.

The government wants a more flexible choice for students in a more "liberalised" higher education market.

As an example, the Open University will offer courses through local further education colleges.

There will be a "student charter" setting out their rights if there are disputes over the quality of courses or facilities.

Last week the Higher Education Funding Council announced that universities would have to publish key information about courses, such as the average salary of former students, the cost of accommodation, teaching hours and satisfaction ratings from previous students.

The funding council will itself have a new role as a "consumer champion" for students.

"The reforms are all about ensuring that students get their money's worth. We're asking graduates to contribute more once they are earning so it is only right that universities deliver for students," said a source close to ministers.

"Universities will become more accountable to students and they will have to be far more transparent about what they are offering."

John Denham, the shadow business secretary, said: "The White Paper will sacrifice quality in an attempt to tackle the fees crisis caused by government incompetence.

"Universities should be able to concentrate on working with business on the skills, growth and jobs needed to ensure we can pay our way in the future, not be distracted by the fallout of a policy that was unfair, unnecessary and unsustainable."