A leading Scottish university is offering discounted degrees to prevent what experts have warned could become “a lost generation” of students who fail to find employment in the midst of a recession. Heriot-Watt University in Edinburgh is among a number of institutions offering help to access a constricted job market.

This summer, about 60,000 degrees will be handed out at institutions across Scotland. The hard-earned certificate was once seen as a passport to a good job and salary but this year even the top students are finding that they are no longer guaranteed a post. Having spent thousands of pounds - and study hours - on their courses, they are becoming disillusioned.

Linda Murdoch, convenor of the Association of Graduate Careers Advisory Service Scotland (Agcas Scotland), told The Times: “What we don't want is a lost generation, which is what we had in the 1990s. Those students became disenchanted, thought they would not get anything - and didn't. It meant real problems down the line because employers could not find recruits.

“The message we are trying to get out to students is it's not all as bad as it may seem. There are still lots of opportunities out there for graduates who are looking for them.”

The Scottish Funding Council is to give £27,000 to Agcas Scotland to help students access such opportunities. The cash will be invested in services such as one-to-one evening advice sessions for job-hunters and improving its website.

Individual universities have also embarked on a number of schemes to give extra back-up to their students. Heriot Watt University is offering its alumni 20 per cent off fees for certain post-graduate Masters courses. The scheme is open to individuals who have previously been registered for a year or more on one of the university's degree courses. They are not available on research degrees and students must pay their own fees.

Dundee University has created an “enterprise gym”, an extra-curricular scheme for students to develop their entrepreneurial skills with local and national business figures. Strathcylde University has Surviving the Recession, a programme which offers students tips on how to apply for jobs in a constricted market.

A spokeswoman for Universities Scotland, which represents higher education principals, said that the institutions recognised that conditions for graduates were “particularly challenging” and were providing targeted help.

Meanwhile yesterday, the Scottish government announced that it would pay the fees of some part-time post-graduate students. The concession, which will cost the government £1,700 per student and £250,000 in total, will apply to 19 courses at ten universities.

Around 150 students will benefit under the scheme, which aims to enable students to do part-time postgraduate courses in subjects which help the government's economic priorities.

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