A compromise deal which could see a gradual reduction in state funding for Oxford and Cambridge Universities is believed to be most likely outcome of a Government review.

An extra sum paid to Oxford and Cambridge, which amounts to £1700 per student -- a total bill to the taxpayer of £35 million a year -- is now unlikely to be abolished in one go when a formal decision is announced.

The money funds the teaching system of individual seminars which Oxbridge colleges use, but other universities do not.

'Political embarrassment'

However it is thought to be a political embarrassment that the extra cost is borne by the taxpayer when less than half of Oxbridge students come from the state school sector.

Part of the problem is that many state school pupils who would be academically able to attend Oxbridge colleges are put off by its image and believe it is a place for public school pupils.

The colleges are anxious to increase the number of former state school pupils enrolled, but do not want to achieve this by introducing quotas.

Dr John Barron

Dr John Barron, master of St Peter's College, said: "The argument for any kind of superior public funding for Oxford and Cambridge depends on them being the national centres for excellence in this huge range of subjects that they do, and in being on the same level as Harvard, Yale, Princeton or whatever.

"That, I think, is what has to be preserved, and you can't preserve that while at the same time reducing your entry standards."

The Government's decision is expected early in the New Year.
 

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