The Government said today that universities could provide 10,000 extra places next year but refused to offer any extra funding to cover teaching costs.

A surge in applications and a freeze on student numbers had meant that 50,000 students were likely to miss out on a place this autumn.

The Government had capped student numbers, with just 3,000 extra places available for full-time first-year students this year, because of a £200 million funding shortfall.

It has now said that it will allow 10,000 extra places but that, although student support in fee loans and grants will be available, there will be no money to finance the teaching. If universities offer extra places they must pay for the bulk of the course fees out of their reserves.

The additional places are also available only in maths, science and technology — the most expensive courses for universities to run.

University vice-chancellors welcomed the extra places but warned that the lack of extra funding could jeopardise standards.

Sir Martin Taylor, vice-president of the Royal Society, said: “Building the next generation of scientists requires not only financial support for the students but also for the institutions that will be responsible for educating them.

“Failure to recognise this and to provide the core funds needed will ultimately lead to an unsustainable higher education system that simply cannot cope with the demands placed upon it.”

University leaders also fear that arts subjects could suffer as a result of the concentration on science.

Professor Paul Wellings, vice-chancellor of Lancaster University and chair-elect of the 1994 Group, which represents research-intensive universities, said: “We welcome the Government’s announcement to provide additional student support funding for 10,000 students.

“1994 Group universities want to help meet this demand but additional teaching funding is also required to maintain the quality of student experience.”

Lord Mandelson, the Skills Secretary said that science subjects gave young people the skills they needed for the jobs of the future.

The costs of supporting the extra students would be met be “reprioritising” existing budgets, he said.

Part of the refinancing package for higher education means that graduates will no longer be able to defer payments on student loans for five years but will have to make repayments within two years.

Ministers said that the Government had held discussions with the higher education sector about the increase in places and universities had said they would be able to recruit more students without compromising the quality of courses.

David Lammy, the Universities Minister, said: “In tougher times it is right that we continue to invest, which is why we are providing funding today to help meet some of the unprecedented demand to study at university.”

Sally Hunt, general secretary of the University and College Union (UCU), welcomed the Government’s announcement, but said that students could not be crammed into universities if staff jobs were being cut.

“If the Government is serious about getting students to study more science, technology, engineering and maths subjects, it cannot afford to sit idly by while universities make huge cuts to their provision,” she said.

“Our message to the Government is quite simple — if we want to ensure we are delivering the highest possible quality of education to our students, we have to abolish any notion that it can be done on the cheap.”

Stephen Williams, the Liberal Democrat spokesman for universities, said: “Universities will struggle to take on these extra students without being given the money they need for teaching.

“This announcement comes late in the day for the thousands of young people trying to plan what they will do after they get their exam results next month.”

David Willetts, the Shadow Skills Secretary, said: “The Government’s belated U-turn is welcome. The extra 10,000 places are long overdue and reverse ministers’ own reduction in extra places.

“Around 40,000 more applicants are likely to be rejected this year than last. And there is nothing for those whose A-Levels stop them from applying for courses. We still face a summer crisis.”

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