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In the UK, the tradition of the government funding university education is being questioned. The long held belief was that the responsibility of financing the higher education lies with the government. Typically while the universities incurred £8,000, they were charging only £1, 125. The notion seemed to hold good when there were fewer students aspiring for higher education. But the steady increase in the number of students taking to higher education left a chasm between the funding and the costs universities incurred. As a result the universities are experiencing a funding crisis and are losing out their competitiveness. To tide over the crisis the Tony Blair government proposed to introduce a new system called ''Top-up'' fees wherein the universities can charge higher fees (up to £3,000) and thereby cover costs. The case gives details of how the existing system is hampering the universities'' progress and how the proposed new system may or may not address the problem.