"There is still an extremely strong case for encouraging more young people in the UK to go to University. I feel that the CIPD's report undervalues higher education at a time when we need to fully appreciate the skills of our graduates, and recognise how these can help stimulate and grow the economy and contribute to social mobility," the Vice Chancellor said.

"Graduates from British universities earn more over their lifetime than non-graduates - so pay more tax - and they are less likely to be unemployed. But going to university means much more than just obtaining a degree and earning more money. The whole student experience provides life, social and employability skills that will last a lifetime.

"Not only will these skills be increasingly in demand by employers and businesses, but they are attributes that help graduates contribute positively to our society. Graduates are more likely to vote, to volunteer and to be socially active, driving equality and social mobility," Mr Rammell added.

Bedfordshire's Vice Chancellor also questioned the methodology behind the claim in the CIPD's report that less than half UK graduates are working in graduate roles, pointing to the results of the annual independently audited Destinations of Leavers from Higher Education (DLHE) survey.

He said: “It is very difficult to see the evidence in the CIPD report for its misleading claim that a majority of graduates end up in non-graduate jobs. The DLHE survey, which 80% of graduates participate in, shows that six months after graduation 68% are in a graduate level job and after a couple of years, the vast majority achieve that.

"The most recent evidence from the employer-led organisation, the Association of Graduate Recruiters, predicts a 12% increase in graduate vacancies this year. And the financial premium for having a degree is holding up with graduates earning almost £10,000 more a year than people without degrees.

"Overall demand for graduates is increasing. Changes in the occupational structure over the last seven years show low skilled jobs falling rapidly, whilst more professional and managerial jobs have increased significantly. So it’s worth it in career terms to go to university; quite apart from the social benefits, graduates are more likely to be in work, to vote, to be healthy, to volunteer and to contribute to civil society.”