More than 300,000 university hopefuls face rejection this year after a dramatic rise in the number of applicants.
New figures released yesterday showed that as many as four in ten people who apply will lose out after a 23 per cent surge in applications.
Nearly 800,000 students will compete for fewer than 500,000 places as demand for university soars to its highest ever level.
But universities have been barred from creating extra places to meet spiralling demand after ministers announced severe budget cuts.
Despite the unprecedented jump in applications, swelled by last year’s rejects who failed to find work, 6,000 fewer places will be available to first-years this year than in 2009.
University chiefs said ministers must choose between funding university places or paying the benefits of thousands of would-be students who end up on the dole.
Ministers, who have spearheaded a long-term campaign to raise college recruitment to 50 per cent of young people, told students university was not ‘the only choice’ and urged them to consider apprenticeships instead.
The shock rise in applications emerged in figures published yesterday by the Universities and Colleges Admissions Service (UCAS).
By the admissions deadline of January 22, a total of 570,556 young people had applied – up 106,389 or 22.9 per cent on 2009.
If the increase in applications continues, nearly 790,000 students will be competing for fewer than half a million places.
More than 300,000 – 38 per cent and twice as many as last year – stand to miss out.
The main university applications deadline is January 22 but students have until June 30 to submit their forms.
Applications received after this date will be entered into the clearing system, which matches applicants to courses with remaining vacancies and can last well into September.
Last year 639,860 applied in total and 158,000 ended up without places.
On current trends, if the final number of applicants is also 23 per cent up on last year, that figure could be double – more than 300,000.
UCAS said administrative changes had pushed up this year’s numbers. Youngsters are also thought to have got their applications in early in anticipation of an unprecedented scramble for places.
But UCAS chief executive Mary Curnock Cook said candidates faced a ‘very challenging and competitive’ time.
‘There has been a steady increase year-on-year since 2007, but this year shows a sizeable leap in applications,’ she said.
‘We could conclude that the current economic situation is causing people to apply to higher education as a way of re-training to ready themselves for the job market once the economy picks up.’
Increases in applications from mature students were particularly stark – 44.8 per cent among 21 to 24-year-olds and 63.4 per cent among over-25s.
But there was also a rise of 16.5 per cent in applicants from under-21s.
Universities face fines of £3,700 for every student recruited above a strict quota after ministers cut university budgets more than £500million.
Many are responding by raising their A-level entry requirements to make it harder for candidates to win places.
Others are seeking to recruit more international students, who must pay the full cost of their tuition.
Universities can take them on in unlimited numbers because their places are not subsidised by the public purse.
Ministers faced criticism last summer after around 160,000 candidates missed out on places.
But this summer that figure could be twice as high after thousands who were turned down in 2009 re-applied.
UCAS reported that 46,012 of this year’s applicants also also tried their luck last year.
This was an increase in re-applications of 45.5 per cent on 2009.
Job-related courses were particularly popular this year, with social work applications up 41 per cent and nursing up 74 per cent.
Yesterday’s figures heaped pressure on universities as they are forced to choose between record numbers of well-qualified candidates.
They also piled pressure on ministers to reconsider the cap on places.
Professor Les Ebdon, vice-chancellor of Bedfordshire University, said: ‘The Government now has a straightforward choice: fully fund additional student places in 2010 or spend more on benefits for the thousands turned away from higher education.
‘The failure to fund universities will increase the call on the benefits budget of the Department of Work and Pensions, as thousands of applicants, who would have studied for degrees, are instead left to sign on because of a shortage of funded places.’
Tory higher education spokesman David Willetts said Labour had made a ‘mess’ of public finances leading to the shortage of places.
‘Whilst higher education cannot be exempt from public finance constraints, we have managed to secure an extra source of funding. By offering an early repayment discount on student loans we will finance an extra 10,000 university places this summer,’ he said.
Higher Education Minister David Lammy said: ‘Getting a place at university has always been, and should be, a competitive process.
‘University is not the only choice for young people. The Government has hugely increased the range of equally worthwhile opportunities for young people: 100,000 foundation degree places, 35,000 new advanced apprenticeships over the next two years and 104,000 new jobs through the Future Jobs Fund.’
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