Students could see dramatically different financial outcomes depending on the degree subject they choose, with some courses leading to lifetime earnings gains of up to £400,000 while
others offer little or no financial advantage, according to new analysis.
Research by the Institute for Fiscal Studies (IFS) found that graduates earn, on average, around £100,000 more over their lifetime than comparable non-graduates after accounting for taxes and student loan repayments.
However, the study highlights significant variation between subjects. Degrees in medicine and economics deliver the highest financial returns, while some courses generate only modest gains and, in certain cases, leave graduates no better off financially than peers who did not attend university.
The findings come as the government considers measures to curb the expansion of courses that consistently produce poor outcomes for students. Ministers have announced plans to explore legislation that could limit growth in underperforming programmes at certain providers.
The government is also stepping up efforts to tackle what it describes as poor-quality degree provision, particularly within rapidly expanding franchised courses, arguing that student outcomes should take precedence over recruitment volumes and profits.
A consultation due this autumn will examine the introduction of minimum English language requirements for prospective undergraduate students seeking access to student finance. Ministers say the proposal is intended to ensure students are adequately prepared for higher education before taking on debt.
Skills Minister Jacqui Smith said university remains one of the most transformative opportunities available to young people but warned that a degree is “not a universal guarantee of success”.
“Not all degrees are equal,” she said, urging prospective students to consider their options carefully rather than viewing university as the default route after school.
Alongside the earnings data, the government has published a new “Pathways to Priority Occupations” measure identifying degree subjects most closely linked to jobs in sectors targeted by the UK’s Industrial Strategy. Medicine, nursing, architecture and computing rank among the strongest routes into priority occupations across healthcare, construction and technology.
The government estimates that an additional 1.8 million skilled workers will be needed in these sectors by 2035.
Officials said the new measure will help inform eligibility for a targeted maintenance grant expected to be introduced from the 2028–29 academic year, alongside further evidence and consultation with stakeholders.
The government is also working with UCAS to improve access to information on graduate earnings and employment outcomes, enabling prospective students to compare courses more easily before applying.
At the same time, ministers are seeking to strengthen alternatives to university through a record £3.3 billion investment in apprenticeships. The funding is intended to support an additional 50,000 apprenticeship starts by 2029 and reverse part of the 40% decline in participation among 16- to 24-year-olds over the past decade.
The apprenticeship programme forms part of the government’s wider Youth Guarantee, which aims to ensure every young person can access employment, training or education opportunities, including subsidised jobs and incentives for employers to recruit young people who have been out of work. Photo by Paolaricaurte, Wikimedia commons.
