Deciding whether to go to university and which course to apply for is an incredibly exciting but daunting choice for thousands of young people right now. While gaining a degree still boosts lifetime earnings for most, new data from the Institute for Fiscal Studies (IFS) reveals a stark reality: roughly one in four graduates will end up financially worse off than if they had skipped higher education entirely.
In this article, we reveal the true value of an undergraduate degree, which subjects offer the best financial returns, and how the government plans to tackle courses that fail to deliver.
How much is a degree actually worth?
On average, a degree makes you £100,000 better off over your working life compared to someone with similar school grades who did not go to university.
- Is getting a degree worth it? - Before accounting for student debt and taxes, the average female graduate earns £290,000 more over her lifetime than a non-graduate, while a male graduate takes home £390,000 more.
- How much better off will you be? - Once tuition fees, loan repayments, and higher tax brackets are deducted, the average net boost falls to £109,000 for men and £90,000 for women.
- Are you guaranteed to be better off? - Not necessarily. On average, around a quarter of all graduates will be financially worse off. Because top earners heavily skew the average figures, the median (middle) net lifetime financial boost is actually much lower: £67,000 for women and £60,000 for men.
Top 10 best degrees for lifetime career earnings
The table below lists the top 10 degree subjects based on the average net lifetime earnings boost for graduates in England compared to non-graduates. If you want to maximise your financial returns, Medicine and Economics are the most lucrative degree options.
| Degree | Average net lifetime earnings boost |
| Medicine | £408,000 |
| Economics | £394,000 |
| Medical Science | £182,000 |
| Law | £177,000 |
| Business | £174,000 |
| Nursing | £142,000 |
| Maths | £133,000 |
| Computing | £128,000 |
| Pharmacology | £126,000 |
| Engineering | £103,000 |
Source: IFS. The numbers reflect net income (earnings minus taxes and student debt). The study focuses on individuals born around 1985–86 who completed their GCSEs in 2001–02.
Top 10 worst degrees for lifetime career earnings
While the majority of degrees boost earnings, 25% of all graduates experience a negative financial return. The table below lists the top 10 worst subjects based on the average net lifetime earnings penalty or boost for graduates in England compared to non-graduates. Subjects such as Creative Arts, Philosophy, and Languages offer negative financial returns when compared to non-graduates. The average performing arts graduate, for example, will be £43,000 worse off over their lifetime than if they had entered the workforce straight from school.
| Degree | Average net lifetime earnings boost / penalty |
| Performing arts | -£43,000 |
| Creative arts | -£40,000 |
| Philosophy | -£9,000 |
| Languages | -£6,000 |
| English | £9,000 |
| Agriculture | £24,000 |
| Geography | £26,000 |
| Media | £29,000 |
| Biosciences | £32,000 |
| General sciences | £36,000 |
Source: IFS. The numbers reflect net income (earnings minus taxes and student debt). The study focuses on individuals born around 1985–86 who completed their GCSEs in 2001–02.
Government crackdown on "poor-quality" courses
The government subsidises the student finance system and writes off unpaid loans and therefore takes a significant hit on low-earning courses. The IFS estimates that only 60% of degrees eventually pay for themselves through higher tax revenues and loan repayments. The taxpayer makes a financial loss on the remaining 40%.
In response to these findings, the Department for Education (DfE) has outlined plans to develop options to limit the growth of courses that consistently deliver poor financial returns to students.
Skills Minister Jacqui Smith issued a stark warning to prospective undergraduates alongside the data release, noting that while university can be transformational, not all degrees are equal. "Too many franchised and poor-quality courses do not offer a good deal to young people - selling the dream then leaving students in the lurch," she said. "We're making the system work better but my message to those thinking about university: choose carefully. Don't walk into a degree by default."
Is university still the right choice for you?
While attending university offers social mobility and value beyond just money, the financial benefit is more complex. Prospective students need to carefully weigh the high cost of student debt against the realistic earning potential of their chosen course, or risk graduating onto a path that actually costs them money.
You can find a full breakdown of how much graduates pay back in our article, 'Student debt: What you need to know about repaying your student loans'. If you are a parent worried about the high cost of higher education and want to start preparing early, read our comprehensive guide on 'Investing for children: What are your options?'.
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