Labour yet to agree tuition fees policy funding

Graduates celebrating Image copyright Getty Images

I understand Labour has still not agreed how to finance a cut in tuition fees from £9,000 a year to £6,000 a year even though the policy is due to be announced in a week's time.

Peter Mandelson, formerly the minister responsible for universities, will give a speech later today in which he will warn the universities must be compensated in full for any cut in their income due to a cut in their income from tuition fees.

Recently university vice chancellors wrote to The Times to warn about the consequences they could face.

This is the argument that has been made by the shadow business secretary Chuka Umunna and shadow universities minister Liam Byrne ever since Ed Miliband signalled in 2011 that he wanted to go into the election promising a cut in tuition fees.

However, the party has yet to agree where to find the £1.7bn a year needed to finance the policy.

Sources told me that the process of developing the policy was ongoing.