Miliband warns on university places

The coalition's controversial higher education funding reforms were 'unravelling', Ed Miliband said (GETTY IMAGES)

Tens of thousands of university places could be cut as the Government tries to make up a funding gap in its tuition fees policy, Labour leader Ed Miliband claimed today.

He warned that the coalition's controversial higher education funding reforms were "unravelling" as more universities than expected planned to charge £9,000 a year.

Soaring fees meant that the new system may cost the taxpayer an extra £450 million a year in student loans - putting 36,000 university places at risk, Mr Miliband said.

"This unfair and shambolic tuition fees policy is now unravelling," he said.

"It will cost taxpayers more, it will cost students more and it may cost thousands of young people their university places."

Analysis by Labour showed that 70% of universities which have so far declared their fees under the new regime were planning to charge the maximum £9,000.

That included all of the elite Russell Group universities that have announced their plans - 13 out of 17.

Drawing on House of Commons Library figures, Labour said average fees of £8,500 could create a funding shortfall of up to £450 million in 2014/15.

At a press conference at Labour's Victoria Street headquarters this morning, Mr Miliband accused Prime Minister David Cameron of breaking a promise that £9,000 fees would be an exception.

And he said that the Government's "incompetence" had blown a hole in their claimed savings from the policy of higher fees.

"Whatever the exact number there will be a shortfall in the Government's figures," he said.

"This shortfall in higher education funding is a double jeopardy for young people.

"Not only do they face being burdened by vast debts but, to compensate for the money lost by their incompetence, (Business Secretary) Vince Cable admits he may now cut university places.

"Filling a hole of half a billion pounds by cutting university places could mean over 30,000 fewer young people going to university."

He urged Mr Cameron to say whether he intended to cut university funding or places further and Deputy Prime Minister Nick Clegg to admit that "the pain being inflicted by his broken promises cannot be justified by any supposed gains".

"The whole country knows that David Cameron and Nick Clegg have betrayed a generation of young people aspiring to go to university," Mr Miliband said.