Mandelson puts forward two-year degree programme
Says universities will be fined £60 million for taking in too many students
London: Students will be encouraged to take two year "fast-track" degrees to ease the university funding crisis, Lord Mandelson said on Tuesday.
The Business Secretary ordered a "shift away" from traditional three-year degrees, despite warnings that shorter courses will dilute academic standards.
He also unveiled fresh curbs on student recruitment and up to £60 million (Dh351 million) in fines for universities that have already taken on too many students.
More than 200,000 university applicants also face rejection next year as competition for places becomes tougher than ever.
He shocked universities by warning they face an extra £135 million of cuts in the academic year from next September as the Government passes on to universities the cost of paying grants and subsidised loans to thousands of extra students recruited this year.
They were seeking to ride out a tough job market by going to university in the recession.
The figure includes the estimated £60 million in fines for over-recruitment. But the news increases the likelihood of student grants being slashed and interest rates on student loans being raised.
Ex-BP boss Lord Browne is reviewing student finance and is expected to recommend a rise in tuition fees and a reduction in student grants for middle-income youngsters.
Lecturers said the announcement amounted to a "Christmas kick in the teeth" for students and university staff that would result in large class sizes and job cuts.
Opposition politicians attacked the Government for setting a target to expand universities to 50 per cent of young people and then fining them for trying to meet it.
