Universities to compete for students

Universities in England will have to compete against each other and private providers for a quarter of their student places.

Universities Minister David Willetts has published plans to increase market forces in higher education in England.

He also announced there would be 20 000 places reserved for degrees with fees of less than £7500.

The plan to create extra places for privately-funded individuals has also resurfaced - on the basis that it will be restricted to those sponsored by a business or a charity.

There are also proposals to allow students to repay their loans early, although the government is still consulting on the detail.

From 2012, universities will be able to offer unlimited places for students achieving AAB or better grades at A-level - regardless of the total student quotas they have been allocated.