Employers would gain significant new powers to shape higher education degrees under plans from the Department for Innovation, Universities and Skills.

The proposals are revealed in a paper, titled "Higher Level Skills Strategy" and reported by the Financial Times, sets out the case for devoting the bulk of extra university funding over the next three years to degrees jointly designed and funded by employers.

The paper says that universities should offer a range of reforms "that an employer and employee will want". It suggests options such as degrees that start at different times of the year; timetables that let students vary the intensity of their studies; courses taught 48 weeks a year, both online and in the workplace, and without the traditional university breaks.

Universities that agree to increase co-operation with business would be given "extra resources", says the paper.

It outlines plans for "continued growth" in student numbers "over the next three years", although it does not give a figure. It makes clear, however, there is little further room for expansion of old-style degrees designed by academics and financed by public spending.

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