News25 June 2026
New research from the Institute for Fiscal Studies (IFS) released today shows that the vast majority of university graduates can expect to be better off financially.
The research – based on the earnings of students who sat their GCSEs in 2002 and went on to university – estimates that those who went to university will earn around 20% (£180,000) more on average over their lifetimes because of their degree.
Dr Omar Khan, CEO of TASO said:
“Today’s report adds to the body of research which shows that investing in a university degree pays off – for most people, on most courses. This is critical at a time when there is growing scepticism of the value of higher education.
“Despite this general earnings premium, we know that inequalities in earnings persist for students from different backgrounds. Our research shows that while graduates from poorer backgrounds earn more than their peers who didn’t pursue further study, they earn less than those from more well-off backgrounds. Regardless of educational qualifications, no matter how much talent they show or how much effort they put in, children who receive free school meals end up with lower incomes.
“We need to address these gaps in student outcomes, not just access. It isn’t enough to admit students onto campuses and lecture halls. The higher education sector and employers need to do more to ensure employability and careers programmes are effective, particularly how they target and support disadvantaged learners who face greater barriers in accessing the labour market.”
Notes on the IFS report ‘New estimates of the impact of undergraduate degrees on lifetime earnings’:
- The report investigates the lifetime financial returns to starting a full-time undergraduate degree at a UK university before age 21.
- It used detailed data on a cohort of England-domiciled students who were born in the mid-1980s and took their GCSE exams in 2002.
- It estimates how much graduates from this cohort can expect to earn over their lifetimes, and also how much they would have earned over their lifetimes had they not gone to university.