Individual subjects will be ranked gold, silver or bronze.
It also began a pilot scheme involving 50 universities and colleges, including the University of Cambridge, Imperial College London and the LSE.
The system is expected to be fully rolled out in autumn 2019, according to officials.
Gyimah added: “In the age of the student, universities will no longer be able to hide if their teaching quality is not up to the world-class standard that we expect.”
Last year, the National Union of Students (NUS) called for a boycott on the National Student Survey, the poll of undergraduates used to help rank universities for the expanded TEF.
The union calimed the system would “disproportionally hit female students and students from black and working class backgrounds” due to its focus on what students go on to do after graduation.
“It will give universities material to avoid enrolling students from backgrounds who face structural discrimination in the job market,” then-NUS president Malia Bouattia wrote in a piece for HuffPost UK.
TEF caused further uproar when it was revealed that, with the ultimate aim of linking teaching standards to funding, universities which passed basic standards would be able to raise tuition fees above £9,000 per year.
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