Universities often point to the so-called “graduate premium” to justify the fees – the difference in the average income between graduates and non-graduates, and thus the value added to individuals’ employment prospects through completing a degree. The median nominal graduate premium in 2022 was calculated by the Office for National Statistics (ONS) at £11,500, which is 42.5 per cent higher than a non-graduate wage. However, once adjusted for inflation, that graduate premium fell to £8,000 – 29.75 per cent higher than a non-graduate wage. Yet these estimates do not account for some huge discrepancies – for example, three in 10 graduates end up with lower lifetime earnings than those who don’t go to university. On top of this, almost a third of graduates don’t even end up in a graduate job.
