The proportion of people who believe a university degree is not worth the time and money has more than doubled in two decades, rising from 14% to 34%, according to the latest British Social Attitudes survey. This shift in public opinion comes as new research from the Institute for Fiscal Studies (IFS) reveals that while most graduates benefit from an earnings premium—averaging around £100,000 over a lifetime after tax and loan repayments—one in four end up worse off. The premium has also shrunk by about 30% compared with forecasts from six years ago.
Financial Returns and Public Perception
The IFS study could be seen as a vindication of the declining confidence in higher education. The research predates Rachel Reeves's recent changes to student loan repayment terms, which critics argue unfairly worsen conditions for graduates. The findings reflect reduced faith in the government's commitment to protecting the graduate earnings premium, as well as broader anxiety about salary prospects and the economy.
Concerns Over Low-Value Degrees
While the lowest earners are protected through loan write-offs, questions over the financial benefits of higher education must be taken seriously. Debt can have significant effects on people's lives. Some university vice-chancellors believe that a minority of degrees are effectively mis-sold to students unlikely to benefit and to taxpayers who see no return. The IFS found that 40% of men with low prior attainment who went to university ended up worse off. Ministers are reportedly reviewing grade requirements for student loans, including a mandatory pass in GCSE English, though this could exclude those with non-traditional educational paths. Caps on numbers on courses deemed low-value are also likely.
Beyond Earnings: The Broader Value of University
However, it would be wrong to assume that earnings are the only valid measure of a degree. University can be a life-defining experience that enables new social contacts and opportunities beyond formal learning. A recent survey from Advance HE and the Higher Education Policy Institute recorded strikingly positive attitudes: 45% of undergraduates said their course offered good value for money, the highest figure since 2013, while 66% were pleased with their choices. Only 7% regretted going to university.
Support for Vulnerable Students
Such positive feelings could change if youthful expectations are not met. Students from rural areas, those in paid work to help pay for studies, and those from poorer backgrounds who commute from home all need more support. But any idea of an overall loss of trust in UK universities seems misplaced. The sector's finances remain extremely precarious due to funding cuts, cost pressures, and rules on international recruitment. A round of redundancies at Exeter was announced last week.
Ministers Must Emphasise and Ensure Value
Economic anxieties must not lead to reduced participation of less wealthy students. As Nick Harrison of the Sutton Trust, an educational charity, points out, it is irresponsible to discourage those from low-income backgrounds from going to university in the absence of demonstrably better alternatives. Faced with wavering confidence in higher education, ministers should not just emphasise its value, but ensure it.
