Less than 48 hours after marching on Westminster against growing student debt, free education campaigners have decided to walk out in response to the new higher-education Green Paper.

Under the paper’s proposals, ministers would take control of tuition fee thresholds and some universities would be able to charge significantly more than others for topping a “value for money” table, creating a two-tier system.

Universities Minister Jo Johnson said the reforms would still be “delivering value for money for students” and doing “a better job still at delivering the pipeline of graduates we need for a 21st-century economy like ours.”

But student representatives were appalled by the proposals, including a planned Office for Students which would act as an industry watchdog.

National Union of Students national executive member James Elliot said: “These proposals are being openly touted by Jo Johnson as treating students as ‘consumers.’

“If implemented, they will mean potentially unlimited tuition fees, and, by linking teaching funding to graduate earnings, threaten to impose cuts on humanities and the arts.

“It will be a disaster for students and education workers alike, meaning more fees and debt and threatening jobs too.”

On Wednesday, some 7,000 students protested in Westminster over cuts to services and grants for poorer students.

National Campaign Against Fees and Cuts spokeswoman Deborah Hermanns said a national walkout would take place on November 17 and a student strike was being planned.

She said: “Students across the country have shown a willingness to oppose and defeat the government through a campaign of direct action – and this campaign will now escalate.”