Nearly a quarter of students drop out of university despite the Government spending £800 million to try to solve the problem, a committee of MPs will say today.

The rate has not changed in five years, with 22 per cent of full-time students abandoning their degrees. Almost half of those studying part-time never graduate. Universities were given the £800 million during the same period – 2000 to 2005 – to help to retain students, but this had little or no overall effect.

The dropout figures were particularly high for those studying maths and engineering, which are undersubscribed in many universities.

The report, by the cross-party Public Accounts Committee, blamed the drive to widen participation in higher education for the dropout rate. It said that more students were being recruited from poorer backgrounds and it questioned whether there was enough pastoral support for them.

Edward Leigh, chairman of the committee, said: “It is five years on from our last report on student retention but the percentage of students dropping out from their original universities has not budged from 22 per cent.

“This is despite some £800 million being paid to universities over the same period to help retain students most likely to withdraw from courses early. To be fair to the universities, they are expected to improve retention figures while increasing and widening participation.

“More students are being recruited from backgrounds and schools where university was not previously thought to be an option. But these are the very students who are more likely to leave early.

“Universities must get better at providing the kind of teaching and support services that students from underrepresented groups need.”

About 28,000 full-time and 87,000 part-time students who started first-degree courses in 2004-05 were not in higher education a year later. Among the full-time students, 91.6 per cent entered a second year of study, but only 78.1 per cent completed their degrees. Participation in higher education has increased from about 40 per cent in 2001-02 to nearly 43 per cent of 18 to 30-year-olds.

The report said that the Department for Innovation, Universities and Skills had recognised the tension between widening participation and non-completion.

It added: “Universities can lose funding if they retain fewer students than expected, but can avoid this sanction by recruiting more students.” If a university does this, the funding council should agree targets for retention “to be met irrespective of any changes in levels of recruitment”, the report said.

Rob Wilson, the Shadow Higher Education Minister, said: “The Government is currently wasting taxpayers’ money while student debt is soaring.”

Bill Rammell, the Minister for Higher Education, said: “Student retention rates in England compare very well internationally. The higher education sector has made significant achievements in maintaining, and in some areas slightly improving, retention rates for their students. But we accept that there is more to do.”

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