Firms to fund university places

There is a demand for higher level skills in the workforce

Businesses are to contribute funds for 20,000 new university places in plans to promote stronger links between higher education and industry.

Many of the places will go to people in work rather than teenagers studying for a three-year undergraduate degree.

The government has pledged to increase the share of workers with high level skills from 31% to 40% by 2020.

Higher education minister Bill Rammell said this was needed to meet the challenge from India and China.

He said: "Every university, college and employer should be thinking hard about how it can respond to this important challenge.

"Research suggests that approximately four million people are already considering or would consider higher education and a further six million could be persuaded under the right circumstances.

"There is latent demand for higher level skills within the workforce but releasing it will require changes to the design, delivery and funding of learning to be more responsive to employer needs."

Specialist expertise

With three-quarters of the 2020 workforce already out of compulsory education, ministers argue new models for higher level education need to be created.

These could include intensive two-year courses, partly funded and partly designed by employers.

Firms might also have more say in the way courses are designed and will be encouraged to say what sorts of skills they would like to see graduates leave university with.

Universities would be encouraged to work more closely with business in many other ways, perhaps by encouraging more work placements for students on traditional courses.

And employers will be encouraged to help give careers information, advice and guidance during the course of a person's whole education.

The plans, contained in a consultation document, will also look at how specialist expertise in areas such as languages, science, technology, engineering and maths can be increased.

Higher skills economy

The programme builds on the existing Employer Engagement programme currently underway in many English universities.

It is being funded by a £105m investment over the next three years, which was announced in the comprehensive spending review in December.

Head of education and skills at the Institute of Directors Mike Harris said extensive structured links between employers and the education system at all levels were crucial.

He said some universities had enthusiastically embraced the issue and were very responsive to employers' needs.

"What is now required is for this attitude to foster the entire sector, spreading best practice and overcoming any structural barriers," he added.

Professor Deian Hopkin of Universities UK said businesses and universities were already extensively engaged with each other and working on how to create the workforce needed for a higher skills economy.

General secretary of the University and College Union Sally Hunt warned against businesses having too much influence.

She said: "The most effective way for universities to contribute to our society and economy is by allowing them to retain their principle missions as places of research and scholarship.

"Affording the private sector a major say in the curriculum today will mean less innovation and invention for tomorrow as university staff are forced to prioritise policy that focuses purely on the numbers game."

Shadow universities secretary David Willetts said the government's higher education strategy was going stale.

He said: "Far from being a grand new vision for higher education, the latest strategy document gives the impression of a government that is fast running out of ideas."