Shrinking graduate premium sours views on value of a university education, UK poll shows

Younger graduates, with experience of the fee system, are more disillusioned than those who did not pay fees, according to the survey

There was a time when going to university seemed a no-brainer. Better qualifications opened doors to better jobs with greater earning potential.

But with the graduate premium shrinking, mounting anger about spiralling student debt and growing fears about AI eating into the graduate jobs market, it is not surprising that attitudes are shifting.

Public confidence in the value of a university education has plummeted after decades of unfettered expansion across the sector.

The latest British Social Attitudes (BSA) survey found the proportion of people who believe a degree is not worth the time and money has jumped from 14% in 2005 to 34% in 2025. Correspondingly, the proportion who believe those who go to university will end up a lot better off financially than those who do not has nosedived, down from 50% to 36%.

Higher education in the UK has undergone a huge transformation since the first BSA survey in 1983. At that time, only a tiny proportion of school leavers – about 6% – went to university. By 2025, that had ballooned to 36%, and more than 2 million domestic students are enrolled.

This means more graduates are hunting for jobs. They are also paying more for their education. When tuition fees were introduced in 1998, they were set at £1,000 a year. Now, English students pay up to £9,535 a year, as well as living costs.

Younger graduates, with experience of the fee system, are – understandably – more disillusioned than those who did not pay fees, according to the survey.

Meanwhile, student loan repayment thresholds – the salary level above which graduates start paying back their loans – have been frozen many times, rather than uprated in line with inflation as promised. The thresholds will be frozen for three years from 2027 onwards.

Growing disquiet about the above-inflation interest rates charged on these loans has also prompted questions about whether the burden on graduates is too great.

“There’s no getting away from the fact that it’s a challenging labour market out there for everyone seeking work, not just graduates, which is a reflection of the current economy,” said Vivienne Stern, the chief executive of Universities UK. “But the data consistently shows that those with a degree are more likely to have a job, earn more and have better health. And a university education doesn’t just benefit the individual. If we want our country to grow, we need more graduates entering the labour market.”

Nick Hillman, th