Growth in higher education will be delivered through an increase in the number of part-time students doing practical courses as demographic changes mean a falling number of 18 year olds, according to John Denham.

The secretary of state for Innovation, Universities and Skills told senior academics at a conference to debate the future of higher education that growth in the number part-time students will require the development of more flexible, credit-based degrees and for the ability to complete a degree through study at more than one institution.

Denham said: "The future higher education system will need to ensure greater diversity of methods of study, as well as of qualifications. Long-term trends suggest that part-time study will continue to rise, and it's difficult to see how we can increase the supply of graduates as we must without an increase in part-time study.

"But we will surely need to move decisively away from the assumption that a part-time degree is a full time degree done in bits. I don't have any doubt that the degree will remain the core outcome.

“But the trend to more flexible ways of learning will bring irresistible pressure for the development of credits which carry value in their own right, for the acceptance of credits by other institutions, and for the ability to complete a degree through study at more than one institution."

Denham launched the Higher Education debate in February 2008, the aim is to develop a framework to ensure world class status of the higher education sector is maintained.

He argued that an important part of maintaining our world-class status will be to ensure that overall funding for higher education - from public and private sectors - will have to increase. However he pointed out that the case for this will have to be more strongly made if this is to be a reality.