Postgraduate courses have become the Government’s top priority in widening access to higher education, Vince Cable, Secretary of State for Business, Innovation and Skills, told delegates at the Sutton Trust’s summit on admissions to the leading universities.

Dr Cable said applications by 18-year-olds to undergraduate courses were near record levels and the highest ever among disadvantaged groups, despite the introduction of £9,000 fees. But ministers had particular concerns about the impact on postgraduate recruitment.

“There are undoubtedly major barriers to postgraduate education, and this matters because growing numbers of professions require posgraduate qualifications” Dr Cable said. Three-quarters of the students self-finance and have no access to loans. Talks were under way with the banks to try to introduce a new loan scheme.

Research outlined by Dr Gill Wyness, research officer at the Centre for Economic Performance at the London School of Economic Performance, supported Dr Cable’s contention that the basics of the new fee arrangements were well understood by teenagers. Interviews with 15-year-olds showed that most new the level of fees they would have to pay and a high proportion thought that a degree would lead to higher earnings, but still 28 per cent of state school pupils were put off by the cost.

More than a third of independent school interviewees and almost 60 per cent of those at state schools thought their choice of university would make no difference to future earnings. Similar numbers thought the same about their choice of subject.

Research by Dr John Jerrim, of the Institute for Education at the University of London, demonstrated the importance of both these factors. In both the United States and England, graduates from leading universities enjoyed a salary premium of at least 6 per cent over those from other universities.

The two-day summit is being attended by academics and university admissions officers from both countries. Rebekah Westphal, Director of International Admissions at Yale University, said her university was spending $120m a year on financial aid for students from less affluent families. Six out of ten students were receiving financial aid.

At Cambridge University, the budget for outreach activities was £2.7m, according to Jon Beard, the Director of Undergraduate Recruitment. Of the 12,000 young people attending outreach events, 35 per cent subsequently applied to Cambridge and 25 per cent of them won a place. He said financial support for students from low-income homes was now generous, although he was “less convinced” about provision for those from middle-income families.

Sir Peter Lampl, chairman of the Sutton Trust, said in opening the conference that there were too few opportunities for children from low and middle-income families to have successul careers. “All UK universities recognise that fair access is important,” he said. “But there is still a real access issue on both sides of the Atlantic.”

Sir Peter added: “I think we need a more level playing field. It is not just about fairness. It is about the national interest and basic economics. We are not using all the most talented people.”

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