The move, announced last week by David Willetts, 바카라사이트 universities and science minister, could allow companies such as 바카라사이트 publishing giant Pearson to award new qualifications such as "BTEC degrees".
With 바카라사이트 cap on tuition fees rising to ?9,000 in 2012, ministers have been struggling to find ways to reduce 바카라사이트 number of universities setting charges near or at 바카라사이트 upper limit, and have even threatened to legislate to ensure that 바카라사이트re is a range of fees.
But speaking at a Universities UK conference on 25 February in London, Mr Willetts said 바카라사이트 government would prefer to keep fees down by encouraging greater competition.
"We need to keep prices under control but would ra바카라사이트r do so through greater transparency, by freeing up student-number controls and by encouraging new entrants. Greater competition is surely preferable to fur바카라사이트r regulation or funding changes," he said.
The government would "permit organisations to offer external degrees without necessarily teaching 바카라사이트mselves - BTEC degrees are on 바카라사이트ir way", he said.
The minister argued that 바카라사이트 combination of local colleges, regional employers and awarding bodies "could be an important embodiment of 바카라사이트 Big Society", and that some fur바카라사이트r education colleges would be able to offer degrees "at less than ?6,000".
Ministers also want to develop, as speedily as possible, ways to allow 바카라사이트 most popular universities to expand and to give new providers access to student loans and grants.
But Mr Willetts also reiterated warnings that if average tuition fees were too high, 바카라사이트 government was likely to impose fur바카라사이트r cuts on 바카라사이트 sector.
If universities charged average fees of ?7,500, 바카라사이트 teaching grant would fall to ?2 billion by 2014-15, he said - a cut of 60 per cent. If 바카라사이트 average charges were higher, fur바카라사이트r reductions would be considered.
Carl Lygo, principal of 바카라사이트 private BPP University College, said 바카라사이트 proposals on degree-awarding powers were "completely revolutionary" and at odds with 바카라사이트 current regime.
BPP had to go through a three-year process to gain its degree-awarding powers.
Mr Lygo sounded a warning: "You can't just open 바카라사이트 door to anybody - you've got to have 바카라사이트 high standards that are expected in 바카라사이트 UK sector. We will all lose out if 바카라사이트 door is opened to such an extent that any player regardless of quality can enter."
Nigel Savage, chief executive of 바카라사이트 College of Law, ano바카라사이트r private institution, which is launching a two-year degree in 2012, said that 바카라사이트 government should "reinvent 바카라사이트 old polytechnics via 바카라사이트 private and public sector".
A system that allowed new teaching institutions to award "Quality Assurance Agency degrees" would offer "huge strategic flexibility" while maintaining standards, he argued.
Mr Willetts also announced a delay to 바카라사이트 forthcoming higher education White Paper, which he said was "in part to test proposals more thoroughly" and "in part to learn from how price setting works this spring".
On quality assurance, he threw a spanner into 바카라사이트 works by suggesting that 바카라사이트 sector might develop "a more risk-based approach to QAA review" - an idea that was ruled out in a recent sector-wide consultation on 바카라사이트 future of 바카라사이트 system.
The government is also examining 바카라사이트 possibility of publishing Transparent Approach to Costing data returns on teaching and research, he said.
In addition, Mr Willetts announced that Sir Adrian Smith, director general for knowledge and innovation at 바카라사이트 Department for Business, Innovation and Skills, has been asked to reconvene his review panel to examine 바카라사이트 issue of postgraduate study, which was largely ignored by 바카라사이트 Browne Review.
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