University places will be awarded to people in work rather than students in an effort to bridge the gap between higher education and industry.

Students will be rejected the opportunity to attend one of the 20,000 new university places that businesses will fund.

The new plan comes after promises from the Government to increase the amount of workers with high skills from 31 per cent to 40 per cent by 2020.

With three-quarters of this figure already out of education, ministers argue that new models for higher education need to be created.

Higher education minister Bill Rammel said: “Every university, college and employer should be thinking hard about how it can respond to this important challenge.

“Research suggests that approximately four million people are already considering or would consider higher education and a further six million could be persuaded under the right circumstances.”

The method of education could include intensive two-year courses, partly funded and designed by employers.

Businesses will be able to have an input in the way the courses are designed and what sort of skills they would like to see undergraduates come out with.

Employers will also be encouraged to offer careers advice and guidance, as well as placements for students on traditional courses.

The plans, which are contained in a consultation document, will consider how specialist expertise in areas such as languages, science, technology, engineering and maths can be increased.

The plans mirror the programme that has been adopted in many English universities across the country, Employer Engagement programme.

It was announced in the comprehensive review in December that £105m would be invested into the programme over the next three years, and has since proved to be a great success.

Mike Harris, Head of education and skills at the institute of directors, said some universities had enthusiastically embraced the issue and were very responsive to employer’s needs.

However, general secretary of the University and College Union Sally Hunt warned that it is easy to let the businesses have too much influence. She said: “Affording the private sector a major say in the curriculum today will mean less innovation and invention from tomorrow as university staff are forced to prioritise policy that focuses purely on the numbers game.”

Shadow universities secretary David Willets attacked the Government’s plan and said it was going stale. He said: “Far from being a grand new vision for higher education, the latest strategy gives the impression of a government that is fast running out of ideas.”