Proposed Government plans to transform the way in which universities recruit students risk creating a two-tier system that could hit social mobility, a committee of MPs has recently warned. Currently, English universities have a fixed yearly allocation of student places, but the coalition Government proposes to let institutions take on unlimited numbers of the best-performing students.

However, the government has also announced that 20,000 places will be set aside for universities charging fees of £7,500 or less. The business, innovation and skills select committee has aired its concerns that the changes would channel more students – particularly those with low grades – into "a low-cost model of higher education".

The higher education sector could ultimately be polarised into "traditional" universities versus a "low-cost" alternative which could result in undesirable consequences for social mobility if able candidates from lower socio-economic backgrounds felt constrained to choose lower-cost option.

Paul Davis, Managing Director of Perspective, commented: “Universities need to be attracting students from all backgrounds, especially after the hike in fees, not put in a position where they are creating a further divide of students. Again, those who may be pushed into the lower-cost option might be put-off going all together or, concurrently, the students that do attend and gain qualifications the lower-cost options, could be overlooked by prospective employers afterwards.”