The massive expansion of universities is turning degrees into "lottery tickets" that offer graduates no guarantee of a good job, the government has been warned.

Many graduates are said to face disillusionment because there will not be enough well-paid jobs to repay the debts they accumulate at university.

Meanwhile, the 50 per cent without degrees face a future of low-paid and insecure jobs as they lose to graduates in the competition for work.

Stakeholder Response: Campaigning for Mainstream Universities

Pam Tatlow, chief executive of CMU, said: "It is disappointing that the argument that '50 per cent' is too much for the economy to bear has raised its head again - especially when for other countries the 50 per cent target is not even ambitious.

"In fact, similar forecasts have always appeared whenever the expansion of higher education has been proposed or supported by government in Britain - and they have always proved to be wrong in the past.

"It can only be a good, therefore, that the present government seems to be willing to give these forecasters of doom and disadvantage short shrift.