In England, the government wants to encourage more market forces in higher education by promoting consumer choice and making universities more accountable to students paying higher fees.
Universities Minister David Willetts said the White Paper aimed to put "students in the driving seat" and that under the new system, "money will go with students" and that universities that are successful in attracting students should be able to expand.
Labour's John Denham attacked the plans as "unfair and unsustainable".
