Universities: Cost Effectiveness
The question
To ask the Secretary of State for Education, what steps she is taking to improve the assessment of the value for money of Government funding for universities.
Answered by Josh MacAlister
The government has commissioned the Institute for Fiscal Studies to update their 2020 research report on the impact of undergraduate degrees on lifetime earnings, and this will be published in early 2026.
The 2020 research suggests that higher education (HE) yields a positive financial return to both the graduate and the exchequer for the majority of graduates over their lifetime. Previous graduates are estimated to be over £100,000 better off on average in real terms by going to university after taxes, student loan repayments and foregone earnings are considered.
Whilst the department recognises not all HE qualifications are associated with high salaries, we want all HE providers to equip their students with the skills they need to progress to good jobs they find rewarding.
The government will continue to work with the Office for Students, empowering it to hold HE providers to account for the quality of students’ experiences and the outcomes they achieve.
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