Research from the Institute of Fiscal Studies (IFS) gives ‘new estimates of the impact of undergraduate degrees on lifetime earnings’.
The UK Government has said that there is a need for ‘Drastic action to tackle poor-quality degrees and crackdown on the rapid expansion of franchised, and often poor-quality, provision is also ensuring the system prioritises student outcomes over volume or profits.’ The statement was made in response to new research from the IFS that found significant differences in undergraduate subject choices on lifetime earnings. The Government is drawing up options to limit the growth of some courses from some higher educational providers where there are ‘consistently poor returns for students’.
The plans also relate to the Government’s Pathways to Priority Occupations measure which is designed to identify pathways to priority occupations in priority sectors – including construction and health and social care, which they have said will need 1.8 million more workers between now and 2035.
Key data from the IFS
The New estimates of the impact of undergraduate degrees on lifetime earnings reports that:
- On average graduates earn substantially more than non-graduates in their 30s; with female graduates having 56% higher median earnings than female non-graduates and male graduates having 28% higher median earnings than male non-graduates. It’s predicted this earnings gap will persist throughout working lives.
- On average a graduate can expect to be around £100,000 (15%) ‘better off than a similar young person who did not go to university’ with gains higher for men than women (£109,000 compared with £90,000).
- Several subjects were estimated to have low or negative returns including creative arts, philosophy and languages (as an average, not for all students who take these subjects).
- Medicine and economics offer the highest individual net lifetime returns at over £400,000 on average.
- Students who had lower attainment prior to university have lower average lifetime returns but they are still positive returns on average.
To learn more you can download the full report.
References
- Gov.UK (2026) ‘‘Choose carefully’: new data shows degree choice drives earnings’. Available at: https://www.gov.uk/government/news/choose-carefully-new-data-shows-degree-choice-drives-earnings (Accessed: 29th June 2026)
- Gov.UK (2026) ‘Pathways to priority occupations: a measure to support post-16 education’. Available at: https://www.gov.uk/government/publications/pathways-to-priority-occupations-supporting-post-16-education-and-skills/pathways-to-priority-occupations-a-measure-to-support-post-16-education (Accessed: 29th June 2026)
- IFS (2026) ‘New estimates of the impact of undergraduate degrees on lifetime earnings’. Available at: https://ifs.org.uk/publications/new-estimates-impact-undergraduate-degrees-lifetime-earnings (Accessed: 29th June 2026)
