Degrees no longer guarantee financial benefits
A study published by the University of Swansea has highlighted startling new figures that could plunge the government's top-up fees plans into further controversy.
The research, headed by Dr Nigel O'Leary, has concluded that many university leavers in today's job market face only a small increase in earnings over their lifetimes in comparison to non-graduates. Moreover, the report suggests that many graduates are paid similar salaries to those who left school with two or more A-Levels.
During debates in Parliament over the introduction of variable fees of up to £3,000 a year, a figure of £400,000 was given as an estimate of how much a graduate could expect to earn throughout his or her lifetime over those who did not go to university.
One of the arguments for tuition fees which found support among some taxpayers was that their taxes should go towards public services rather than funding the minority in university education. Since students would benefit financially in the long run, it was argued, it is fairer for them to 'pay their own way'.
However, it seems that students don't benefit as much financially as the government claimed. In an interview with the BBC News website, Dr O'Leary talked about the 'rate of return' on student investment, highlighting how students' choice of degree could have an impact on how much they could expect to gain back on their initial investment. Those pursuing maths, engineering and technology can expect an average increased earning of £200,000, whilst those at the other end of the spectrum, particularly men holding Arts qualifications, only gain a return of £22,458 on their degree compared to those who entered work after A-levels.
Once living costs during study are taken into account, Dr O'Leary said that some arts graduates could end up worse off in the long term by going to university.
Women get the most financial benefit from university, earning an average of £157,982 more than people with only two or more A-levels, compared to £141,539 for men.
The report pours more cold water on the government's target of getting 50% of under-30s into higher education – already with a large number of graduates going for a small number of graduate jobs many are forced into positions they are under-qualified for, while competition is so great in some areas that there is no pressure to increase wages.
A government spokeswoman said that the £400,000 and £140,000 figures were calculated differently and it wasn't fair to compare them.
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