the problem here lies with the fact that a 'degree' can now be had by all, be it from oxford or hull polytechnic. bullitt's quite right in this sense.
people need to realise that there are varying types of jobs, not all of which require a degree. there are academic minded careers - teacher, doctor, lawyer, journalist etc. where a uni degree is useful - in the case of being a doctor it is your training; if you're gonna be a teacher or journalist it gives you a profound expertise in your chosen subject, and so on.
builders, nurses, plumbers etc. do not need this academic background. their skill - while no less valuable - requires practical knowledge and experience. So these guys should be doing apprenticeships from 16 or 18 so they can learn their trade properly. my mum trained as a nurse, at a hospital. nowadays she'd have to do a nursing degree. and my mate is doing a 'marine studies' degree at plymouth - so he's spent 2 years doing **** all before finally going on a ship around the world and learning the trade properly in 3rd year. makes no sense.
then there's your careers that you barely need A levels for - salesman, shop assistants, shelf stackers... these people should bloody well get jobs straight away... no need for some crap degree from some crap uni. (of course there is in the current climate because everyone else has one, but there shouldn't be).
how should the tories change this? they need to distinguish between the 'right to education' that underpins state primary, secondary and 6th form education, and 'higher education', which is essentially further training that people do not have an explicit right to. And if they don't have a right to it, then it has to be earnt by strong perfrmances in A levels. Which means the cream of the academic crop go to uni. Tuition fees for them should be set at a graded value, with students from poorer backgrounds being subsidised to continue with higher education and ones from richer backgrounds paying more (since they'll undoubtedly receive financial help from their parents anyway).
Those who want to learn a trade should have a widely accepted means of qualification in that trade that doesn't involve uni. I know someone, for example, who is a Master Builder - which is a certificate to say that he's a ******* good one. This should be spread across the board. Again, the government should be able to subsidise apprentices through these schemes.
As for the rest - if you're not the brightest spark/ cock up your exams for other reasons, then that's not the end of the world. You can still learn a trade, which will capitalise on other skills to the academic ones the school system obsesseses about. If you don't want to do this, then you can fund your own way through uni or get a normal job that doesn't require a degree.
If this were the system in place, we'd see a lot less people getting meaningless degrees, and thus a lot more people in full time jobs, and thus more taxpayers. More importantly, it will reduce the quantity of students in the country, but increase the quality. Cameron's raise of the tuition fees will only reduce the quantity - and quality poor students will be among those who miss out.