.png)
7 hours ago
2
A university degree is still the best route for the UK’s young people to boost their life chances, despite attacks by “edu-sceptics” over debts and costs, according to a former Conservative minister.
David Willetts, who introduced the system of fees and loans that fund higher education in England, has hit back at critics – including those in his own party – who claim a degree is no longer a wise investment.
In a research paper for King’s College London’s policy institute, Lord Willetts argues that the “graduate premium” in pay makes a university education clearly worthwhile, with an undergraduate degree worth on average £280,000 more for men and £190,000 more for women over their lifetimes, after student loan repayments, than for those without a degree.
Even comparing those with similar school qualifications, by the age of 31 graduates are earning 37% more than non-graduates with two or more A-levels, Willetts reports. The graduate premium increases into middle age, unlike those with job-specific vocational qualifications.
The last Conservative government aggressively targeted university education, with the then prime minister, Rishi Sunak, claiming “young people are being ripped off”, saddled with debts and “sold a false dream” of lucrative careers. Last year the total student loans outstanding reached £236bn in England, with the average graduate owing £48,470.
Willetts described the attacks as “virtue signalling” by “graduate edu-sceptics” that could put off the disadvantaged young people who have most to gain from going to university.
“It would be a tragedy if they failed to take advantage of the opportunity of going to university when the evidence still shows that it is very likely to be beneficial. Going to university is the most powerful single tool we have to boost the living standards and life chances of many young people,” he said.
Willetts says that while the graduate premium has declined since the 2008 financial crisis, the pay ceiling for graduates remains much higher than for non-graduates, and that they enjoy non-financial benefits including improved physical and mental health compared with non-graduates.
Asked what he would advise his former colleagues in the Conservative party, Willetts said: “What we mustn’t do is get into the mindset that all the other stages of education are seen as good but for some reason we think higher education is bad.
“Politicians don’t think there’s a political market in saying that children shouldn’t be going to school and wouldn’t it be great if we could cut their funding by 25%. So I don’t see why we should adopt a different approach [to universities] than to any other stage of education.”
As universities minister, Willetts pushed for publishing detailed pay figures for graduates by university course – which the last government used to highlights its claims of “Mickey Mouse degrees” that needed to be closed.
Willetts says prospective students should know in advance where their course may lead. “They may have very good reasons for wanting to do, for example, performing arts, even if the prospects for pay aren’t very good,” he said.
“What I don’t believe is that it justifies the end of the English model, where governments do not micromanage universities and tell them which courses should be closed down. I don’t believe that Whitehall should be trying to run our universities. That is bad for universities and bad for students.”
