Higher university fees are opposed by the National Union of Students University vice chancellors are set to be told that raising student tuition fees is the best way to ensure future finding for higher education.
Universities minister David Willetts is expected to make the argument during a speech to vice chancellors later.
The Tory MP will say the approach is better than cutting student numbers or reducing the standard of courses.
In the past his Lib Dem partners in the coalition government pledged to abolish tuition fees in England.
In England, students pay fees of £3,225 a year, for which they take out loans, repayable after their income reaches £15,000.
Tuition fees are free for Scottish students in Scotland, and capped at £1,285 for Welsh students studying in Wales.
Graduate tax alternative
Mr Willetts’s speech will take place as university vice chancellors will meet later for a conference at Cranfield University, in Bedfordshire.
Universities in England are waiting for two major announcements – the result of the government spending review, which could cut higher education budgets by 20% or more – and the outcome of the review by Lord Browne of long term university funding.
Both are due this autumn.
The university minister’s speech is expected to discuss three options open to the government – stepping back from the rapid rise in student numbers, allowing funding cuts to decrease the standard of university teaching, and higher fees.
It is understood the universities minister will suggest asking students to pay more is the best option.
Business Secretary Vince Cable, meanwhile, has suggested a graduate tax linked to postgraduate salaries as an alternative.
Under a graduate tax, the amount the student pays would be a percentage of his or her income, rather than a fixed amount linked to a specific university fee – so some students could end up paying more than the fees for their own degree.
However, the idea has not received strong support in government.
Senior Conservative sources said the coalition government wanted to maintain the direct payment from the individual to the university, and that ministers believed it would be unfair for high-earning graduates to pay back more than the cost of their degrees.
Labour have accused the two coalition partners of squabbling over the issue.
Cost-cutting suggestions
It has also been reported that Lord Browne will reject a graduate tax and instead raise fees to around £7,000.
Higher university fees are also opposed by the National Union of Students which has supported proposals for a variable graduate tax.
Other moves to cut costs have also been mooted in the past, such as two-year degrees, more students studying part-time, by distance learning or living at home, and expanding the role of private institutions.
In the UK as a whole, income from fees – including fees paid directly by students such as postgraduates and overseas students – makes up about 29% of universities’ total funding, which was £25.4bn in 2008/09.
Another 35% comes from government funding bodies, while the rest comes from other sources such as research grants, endowments and investments.
In addition, students are eligible for loans towards their maintenance costs, which they pay back in the same way as their fees.
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