Imperial College to raise fees from £1,100 to £10,500 a year

A leading university revealed plans yesterday to introduce fees of up to £10,500 a year if ministers approve controversial proposals to allow elite institutions to charge top-up fees.

A confidential paper issued by Sir Richard Sykes, the rector of Imperial College London, states: "Initial discussions with a number of other leading universities have indicated a commitment to charge higher fees."

Imperial is one of an elite group that are "sworn to work together on the initiative", a senior figure at the college said. The Independent revealed yesterday that ministers are considering three options under their shake-up of higher education to be unveiled next month: top-up fees, a graduate tax and a substantial across-the-board rise in fees.

But university leaders are confident the Government intends to scrap the current cap on fees to allow institutions to cover the true costs of providing higher education.

Sir Richard's paper, due to be discussed at Imperial's ruling council meeting today, argues that "it seems likely" the Government will propose to remove the £1,100 limit on fees. The paper seeks agreement that Imperial would then "state publicly that it would wish to introduce higher fees".

Sir Richard's paper warned that careful thought was needed about what level the fee should be set at but revealed that it cost £10,500 a year to teach a student doing a laboratory-based subject.

The college currently receives around £7,700 per student from the Higher Education Funding Council, and from tuition fees. "Hence the college loses around £2,800 per annum for each student," the paper says.

It acknowledged that higher fees could put some students off applying to Imperial but Sir Richard said that as 40 per cent of its students came from public schools, their "parents are used to paying fees to educate their children". If only 30 per cent of students paid the full fees while the rest received help from bursaries, that would boost the university's finances by £16.9m.

Lecturers' unions attacked the plans, arguing that they would create a two-tier system which would restrict access to elite universities. Sally Hunt, general secretary of the Association of University Teachers, accused Sir Richard of "simply playing politics with students' lives".

She said: "We are fundamentally opposed to top-up fees. They would undoubtedly lead to a two-tier system where wealthy students can go to the best institutions and poor children would be left to make do with second best. It would do absolutely nothing to solve the chronic funding problem in higher education."

A spokesman for Imperial College said the paper was the "first stage" of a consultation of students and the university's senior management. Under current rules, universities can charge higher fees, but would lose their Hefce grant pound for pound if they raised fees above the £1,100 maximum.