LECTURERS and students gave a cautious welcome yesterday to higher education reform proposals by shadow universities minister Liam Byrne.

The prominent Blairite said a new approach was needed “to escape this government’s cost-of-living crisis” and build “a bigger knowledge economy.”

The alternative was to “watch the university system go bust,” he said as his new pamphlet on the subject was published by the Social Market Foundation.

Rather than concrete proposals Mr Byrne’s document, which he says is based on conversations with academics, students and college officials in a number of countries over the last six months, identifies 10 “ideas for debate.”

These include how to widen access to university as well as how to improve connections between universities and researchers.

He mulls expanding degrees so people can “earn while they learn” and floats a controversial “student premium” which he says would allow those from poorer backgrounds better access to education.

Higher education union UCU said the pamphlet would help “kickstart the debate” on university funding.

“The Labour Party should be applauded for putting higher education on the agenda,” general secretary Sally Hunt said.

“The Liberal Democrats U-turn on tuition fees prompted fears that politicians may try to avoid the issue.

“We need all parties to set out how they will fund their proposals for one of the most important areas of the economy.”

And the National Union of Students slammed the “current system of sky-high fees and sky-high debt.

“We need to accept that the market in tuition fees has failed and scrap it,” said NUS vice-president Megan Dunn.