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The Lib Dems are pushing measures to increase social mobility, making it easier for people to get ahead regardless of their background.

Alan Milburn, the Coalition’s social mobility adviser, last week criticised policies such as the scrapping of the education maintenance allowance that was paid to pupils from low-income homes.

Since 1894 the University of the State of New York has been continued by the Constitution, which states that its corporate powers "may be increased, modified, or diminished" by the Legislature.

The Regents' protean power to "visit and inspect" member institutions of the University has taken various forms.

That is rejected by many Conservative MPs, who say that ministers should focus more on improving the performance of the state schools attended by poorer children.

Some campaigners want universities to change their entry policies to admit poor children with lower grades than their better-off counterparts.

“Even in my own constituency, Yeovil, which would not be regarded as one of the deprivation blackspots of the country, most young people would regard going into investment banking as almost leaving the country, because it’s a different world,” he said.

“They will often be encouraged to think it is beyond them.” In many parts of the country outside London, the minister suggested, children without family connections believe that careers such as banking, law and journalism are closed.

“If your expectation in a school is that you only need a modest set of qualifications because that’s all you need to work for the local employer, which you think is the best job you could do, that’s a huge cap not just on social mobility, it is a cap on achievement in examinations,” he said.

“If you think it is really important to get three A*s to get into Cambridge and the City, you will be much more motivated than if you think you just need three Cs to go into the local medium-ranked employer.” As well as telling teachers and schools to raise children’s expectations, Mr Laws said that employers from “more privileged” industries should also do more to encourage applications from people of all backgrounds.

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