Student tuition fees 'could rise to 14,000 pounds

May 2, 2010 by Graeme Paton, Telegraph

Student tuition fees could rise as high as 14,000 pounds a year under plans to allow universities to charge the full cost of a degree.

An official review led by Lord Browne, the former chief executive of BP, is likely to call for the removal of the existing .3,225 cap to raise standards in higher education, it has emerged.

Vice-chancellors have pushed for a fee rise to counter a cut in Government funding and to allow institutions to compete with leading universities in the United States and the Far East.

On Sunday, it emerged that Lord Browne was actively considering allowing universities to charge for the full cost of a degree.

It could lead to fees of .7,000 a year, rising to around .14,000 for those studying more expensive courses, such as the sciences.

The review committee is unlikely to sanction the rise straight away, it was reported, but may allow institutions to increase fees above the rate of inflation - possibly up to .1,000 a year - as they move towards a free market.

A source close to the review told the Sunday Times that Lord Browne wanted "the cap off altogether, but he will go by tiers".

"I'm pretty certain he will not go to a free market straight away," it was claimed. Lord Browne's report is expected to be published in the autumn.

Both Labour and the Conservatives have refused to state their position on fees before the review is completed. The Lib Dems want them to be scrapped altogether.

Ministers have already been warned that fees cannot rise without a dramatic reform of low interest student loans, which are currently heavily subsidised by the Government.

The Confederation of British Industry has said loan repayments should be set at commercial interest rates to ease the burden on the taxpayer.