With University fees a real strain on some families, any support for our children would be welcome. Tuition funding has always been a contentious issue and with more students applying for university places then ever, the news that Business Secretary Vince Cable is likely to suggest a graduate tax which could be brought in to make England's student funding system fairer and more sustainable could be a way forward. It would mean students repaying the costs of their tuition through taxation once they begin working, with higher earners paying more.

However, The University and College Union said a graduate tax would be unfair. At the moment, the government lends students money to cover the cost of fees, with graduates beginning to pay back the loan once they are earning more than £15,000 a year.

Mr Cable told BBC Radio 4's Today programme: "We are not announcing a graduate tax policy. What I am doing today is asking Lord Browne to make sure this option is properly explored and he has agreed to do that.

"The principle we'd be looking at is the so-called graduate premium, the extra earnings that we have as a result of being a graduate," he said.

He also said the current system, which did not take into account a graduate's earnings, meant "if you're a school teacher or a youth worker you pay the same amount as if you were a surgeon or a highly-paid commercial lawyer".

Students and the university sector are bracing themselves for the outcome of the review by Lord Browne, due in the autumn, with many predicting that tuition fees could rise from £3,225 a year to as much as £7,000.

Mr Cable, whose department is responsible for universities, is also set to suggest ways of cutting the costs of higher education to both taxpayers and students - such as promoting two-year degrees, more students living at home and more flexible, part-time courses.

One proposal, outlined by Universities Minister David Willetts last month, is for more university courses to be franchised out - with universities accrediting courses which are taught by other institutions.

So although a degree course might be taught by a small institution close to a student's home, they would earn a degree from a more distant, prestigious university. There will also be calls for a wider role for private institutions in higher education, which could offer to teach such courses.

With many families savings' eroded under this recession, it could be tough times ahead for students applying, studying and eventually earning a salary.