Which University Degrees Truly Pay Off? A Deep Dive Into Lifetime Earnings

Thu Jun 25 2026 13:30:55 GMT+0000 (Coordinated Universal Time)

A new IFS study reveals startling differences in lifetime earnings across university courses, from £400k benefit in medicine to potential losses in creative arts.

The Institute for Fiscal Studies has found that while a university degree generally boosts lifetime earnings, the gains vary dramatically by subject. Medicine earns up to £400,000 more over a career, while arts and philosophy can actually cost graduates compared to non‑graduates. The Department for Education is looking to regulate low‑return courses and explore English‑language requirements for funding. Despite overall benefits, up to a quarter of graduates may end up poorer, especially those with low GCSE grades.

What a University Degree Really Pays: The Lifetime Earnings Gap

The notion that a university degree inevitably leads to higher earnings is no longer a simple fact. An Institute for Fiscal Studies (IFS) report shows that the financial upside depends heavily on the course you choose.

Using an interactive lookup tool now available, students can see how much more, or less, they might earn over a lifetime compared to people who didn’t obtain a degree.

Medicine tops the chart, offering graduates up to £400,000 more over a career than their non‑graduate peers. Economics also delivers a substantial premium. In contrast, subjects such as creative arts, philosophy and languages can yield little or even negative financial returns.

The Department for Education (DfE) has announced plans to cap enrolments in courses with the poorest returns and to consult on minimum English‑language requirements for student finance eligibility.

Overall, an average graduate earns about £100,000 more over a lifetime than comparable non‑graduates—even after taxes and student‑loan repayments. Yet the study also warns that up to a quarter of graduates could be financially worse off.

A one‑in‑ten male graduate could be over £90,000 poorer than if they had taken an alternative path. For those who had low GCSEs yet went to university, the life‑time take‑home pay can rise by an average of £53,000—though up to four in ten of low‑attainment graduate men may still end up poorer.

The data comes from a cohort of England‑domiciled students born in the mid‑1980s who sat their GCSEs in 2002. The DfE’s latest figures cover the 2022‑2023 tax year.

“Whether you should choose a degree depends on more than just money,” said Minister for Skills Jacqui Smith. “Pick carefully, as not all degrees are created equal, and many franchised or poor‑quality courses give little value.”

Sutton Trust CEO Nick Harrison added that university still offers the most reliable route to upward mobility, especially for those from lower‑income backgrounds. He cautioned, however, that the report raises “uncomfortable questions” about alternative pathways for students who might not want a degree.

Universities UK chief executive Vivienne Stern emphasised that arts subjects are driven by passion more than profit, and that creative industries are vital to the UK economy. She added that as AI advances, understanding human thought will become even more valuable.

Explore our interactive visualisation below to discover the economic impact of the different degrees you’re considering.