Are university degrees a Veblen good?

SC06 2006 Rolls-Royce PhantomA general election is coming, in May 2015. The political parties will be aiming to put out policies for university education in the run-up to the general election. Labour seem to be going for reducing fees from £9,000 to £6,000. The Conservatives, as a matter of principle, like both free-market competition and low taxes. But here these two, competition and spending less taxpayers’ money, may contradict each other.