University applications drop sharply after fees hike

But Liam Burns, president of the National Union of Students, said: "Ministers need to take responsibility for their disastrous education reforms and admit that, regardless of the final application numbers, the behaviour of prospective students will be affected by the huge rise in fees.”

Martin Lewis, creator of the Money Saving Expert website and head of the Independent Taskforce on Student Finance Information, admitted Britain was “close to a crisis point for university applications” because of misinformation about repayments.

“While university may not be right for everyone, there's no doubt the increase in fees are at the very least a psychological deterrent – often more with parents than with pupils themselves – and worryingly potentially those from poorer backgrounds too,” he said.

The total number of people applying to university by November 21 stood at 158,387 – a drop of 12.9 per cent compared with the same point last year.

British applications slumped by 15.1 per cent and applications from other European Union states fell by 13.1 per cent.

The biggest drops were among mature students, with applications from 25- to 29-year-olds falling by a fifth and demand from over 40s slumping by more than a quarter.

But applications from foreign students outside the EU – who can be charged more than British counterparts and do not count towards Government caps on student places – have actually increased.

Numbers are up by almost 12 per cent, it has emerged, to 15,996.

Mr Willetts said: “Going to university depends on ability not the ability to pay.

“Most new students will not pay upfront, there will be more financial support for those from poorer families and everyone will make lower loan repayments than they do now once they are in well paid jobs.”

Figures show that in Britain applications have dropped quickest among Scottish students – by 17.1 per cent – even though they get free tuition from the Scottish Government.

Demand among Welsh students, whose fees are fixed at just ￡3,465 by the Welsh Assembly, are down by 10.3 per cent – the smallest drop.

Nicola Dandridge, chief executive of Universities UK, the vice-chancellors' group, said: "We still have to hold back before coming to conclusions about these figures.

"It's worth noting that applicant numbers are currently down, not only in England, but also in Scotland, Wales and Northern Ireland who do not have the same fees system. And last year for various reasons, was something of a one-off in terms of record demand.

"If we compare today's figures with the same point in 2010, the numbers are broadly similar.”