However, plans to raise fees have sparked an angry backlash from the National Union of Students who called for the Government to drop the “muddled” proposal.
Sorana Vieru, NUS vice president, said: “Students will understandably be outraged at any suggestion universities could be allowed to put fees up even higher in order to improve teaching quality.
“It was only four years ago tuition fees were trebled and students now face debts up to £53,000 when they graduate.”
The NUS also expressed concerns at plans to award more institutions university status as providers could be driven by profit instead of students’ interests.
Dame Julia Goodfellow, President of Universities UK, welcomed the move to increase access to higher education but said providers awarding their own degrees must meet the same standards as established universities.
She said: “We support the government's aim to protect the interests of students, increase fairness and demonstrate the value of a university education.”