David Willetts has suggested separating teaching and examining in ÖйúAƬ along the lines of schools ¨C in part to make it easier for ¡°new entrants¡± to join the sector.

The universities minister said such a change would create a more ¡°competitive¡± system and ¡°transform incentives¡± to raise the quality of teaching.

In a speech at Oxford Brookes University today, he said: ¡°I want to float an idea that I think could transform the incentives to focus on high-quality teaching.

¡°We can do it by separating teaching and examining, creating new institutions that can teach, but do so to an exam set externally.¡±

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He added: ¡°It has generally been assumed that any home-grown institution offering ÖйúAƬ must award its own degrees. But I am interested in looking at whether some institutions could benefit from linking themselves to an established exam brand with global recognition.¡±

New and existing institutions that chose to offer external exams could deliver ¡°robust standards¡±, he said, while being able to expand immediately without the need to build a reputation from scratch.

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Making explicit reference to the possibility of new providers in the sector, he said: ¡°Just as I previously worked on supply-side reform for schools, I am keen to see new ÖйúAƬ institutions: the experience of other countries suggests that non-traditional ÖйúAƬ institutions can widen participation, reduce costs and raise standards.

¡°It could be easier to guarantee this if new institutions also had access to the security, quality-assurance and reputation that comes with externally examined degrees.

¡°And there could be a real competitive challenge to universities, forcing them to focus more on teaching.¡±

However, he added: ¡°You will see the obvious parallel. This is like schools preparing students for external exams. And that is the greatest drawback. For many people nowadays, what defines a university is precisely its power to award its own degrees, and I¡¯m not trying to take that away from any institution.¡±

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Mr Willetts¡¯ speech came after he sparked a huge row by telling The Guardian newspaper that the cost of degree courses was a ¡°burden on the taxpayer that had to be tackled¡± and that students should see fees ¡°more as an obligation to pay higher income tax¡± than a debt.

Aaron Porter, president-elect of the National Union of Students, said: ¡°Students will graduate owing an average of ?23,500, and David Willetts¡¯ suggestion that students and families have somehow misunderstood the nature of student debt beggars belief.¡±

simon.baker@tsleducation.com