As a means of investing in skills for the future the Government will provide loans for additional places in science, technology, engineering and mathematics (STEM) subjects - although universities will have to find funding for the teaching.
The Confederation of British Industry (CBI) believes the extra university places will be important for economic recovery.
Susan Anderson, CBI director of education and skills, said: "It is good to see Government investing in the skills of the future. We will need more [STEM skills] when the upturn comes.
"Demand from business for STEM graduates is only set to grow over the coming years as the UK draws more heavily on innovation and technology for jobs, growth and global competitiveness.
"Maintaining the quality of degree courses is equally vital but no one would benefit if universities and the Government tried to offer extra science courses on the cheap."
10,000 extra university places to be funded in science, technology, engineering and maths
The Government has announced it will fund student loans for an extra 10,000 university places.
