Not all Degrees Pay the Same—New Research Shows Huge Lifetime Pay Gaps

Fri Jul 10 2026 16:44:02 GMT+0000 (Coordinated Universal Time)

A study finds medicine tops lifetime earnings, but arts and languages lag, prompting the government to cap low‑return courses.

Institute for Fiscal Studies data reveal that a medicine degree can bring up to £400,000 more over a lifetime than no degree, while arts and languages offer little to a negative return. The average graduate still earns about £100,000 more than peers without a university diploma, but a quarter of graduates could actually be worse off. The Department for Education plans to curb growth of courses with poor returns and to introduce minimum English requirements for student finance eligibility. Policymakers weigh the benefits of university against the risk of low‑value degrees, calling for stronger apprenticeships and technical pathways.

Not all degrees pay the same – study finds huge pay gaps across courses

According to new research by the Institute for Fiscal Studies, the lifetime earnings of a university graduate can vary dramatically depending on the subject chosen. Medicine tops the list, with graduates earning up to £400,000 more over a lifetime than their peers who did not attend university. Economics also offers a strong return, while creative arts, philosophy and languages can deliver little or even negative financial benefits compared with non‑degree holders.

The Department for Education announced that it will cap enrolments for courses with consistently poor returns and will consult about imposing a minimum English language requirement for students seeking finance. The data show that, on average, graduates earn about £100,000 more over their lifetime than counterparts without a degree after taxes and loan repayments.

However, the study also found unsettling trends: one in four graduates could end up financially worse off over their lifetime due to the cost of degree. For male graduates, around 10 per cent may be more than £90,000 poorer than they would have been. Those with lower GCSE grades but who attended university can still expect an average lifetime take‑home pay of £53,000 higher than peers with similar grades who did not attend university, though four in 10 of these graduates may still be worse off.

You can use our look‑up tool below to check how much more—or less—a chosen subject can earn you compared with non‑graduates.

Policy responses

Minister for Skills Jacqui Smith warned students to "choose carefully" and to "not walk into a degree by default." She added that while university is transformational, not all degrees guarantee success, especially those that are low‑value or of poor quality.

Nick Harrison, chief executive of the Sutton Trust, said the report raises the uncomfortable question: if we discourage low‑value degrees, what authentic alternatives will students pursue? Apprenticeships and technical routes offer promise, yet are still insufficient in supply.

Vivienne Stern, chief executive of Universities UK, welcomed the study but stressed that subjects such as the arts feed creative industries and are valuable beyond profit. In a climate of artificial intelligence, understanding human thinking and action remains crucial.

Additional reporting by Phil Leake.