KPMG offers funding for degree plus salary to recruits

It probably could not get better than this - a £20,000-a-year salary plus study at Durham University for free, including free accommodation to boot.

The deal is on offer to school-leavers courtesy one of the biggest accountancy firms in the world. And the icing on the cake is £45,000 salary for the final year.

And at the end there is a guaranteed job at KPMG with the title of chartered accountant and with no strings attached by way of a contract to stay with the company.

According to analysts, the offer would attract any student daunted by the prospect of paying £9,000-a-year tuition fees. They add that the company's move at £200,000 a student – is likely to set a new trend of employer-sponsored university degree.

KPMG aims to lure the 'best talent' by offering a chance to graduate with 'savings, not debt' the company said. The company will sign school-leavers on a six-year contract leading to a BSc in accounting and a full accountancy qualification.

UK universities minister David Willetts is encouraging other companies to come out with similar initiatives.