This White Paper addresses the problems of access to and finance for higher education. The proposals include the following: Government spending on research to be increased in 2005-06 by 1.25 billion pounds compared to 2002-03; a new Arts and Humanities Research Council to be created; non research-intensive universities to be encouraged to work with employers by increased funding for the Higher Education Innovation Fund (HEIF); two-year, work-focused foundation degrees to stimulate up to 50 per cent participation by 18 to 30- year-olds; a grant of up to 1000 pounds a year for students from lower-income families to be re-introduced from 2004; the threshold at which graduates have to start repaying their fee contribution and maintenance loan to be raised, from April 2005, from 10,000 to 15,000 pounds; the Government to still pay up to the first 1100 of fees for students from lower-income families; up-front payment of tuition fees to be abolished; repayments of tuition fees after graduation to be through the tax system, linked to ability to pay; and a fund to be created to give universities the incentive to raise their own endowment finance.

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