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Higher Education: Investment

Asked by Rachael MaskellLabour (Co-op)Department for EducationTabled Answered 11 March 2026UIN 117319

The question

To ask the Secretary of State for Education, what recent estimate she has made of the financial return to the economy of public investment in higher education.

Answered by Josh MacAlister

Research by London Economics estimates that teaching and learning activities provided by the UK higher education (HE) sector generated £94.8 billion, which was equivalent to an average £13 return for every £1 of public investment in 2021/22. The combined research and knowledge exchange activities of UK universities generated a total economic impact of approximately £62.84 billion. This equates to an average of £9.90 for every £1 invested. Spending by UK HE providers also produces indirect effects, positively impacting the economy.

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