𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Some university graduates earn less than minimum wage five years after finishing their degree, a think tank has revealed.

The bottom quarter of graduates in 15 out of 34 subjects, such as sociology and performing arts, earn less than minimum wage five years after graduation.

Meanwhile more than two fifths of graduates fails to secure full-time work 15 months after finishing university, a Policy Exchange report found.

Just 57% of graduates are in full-time work one year and three months after ending their degree, meaning 43% are not.

Shadow Education Secretary Laura Trott MP said: “Young people should not be encouraged to take on substantial debt for courses that leave them financially worse off.”

She added: “For too long, too many young people have been pushed into courses that leave them with large debts, limited teaching time and poor employment prospects. Young people deserve far better from a system that is too often failing them.

“The report exposes just how unfair and demoralising the current system has become. Many graduates do exactly what they were told would secure a better future, only to find themselves burdened with debts for qualifications that do not provide the opportunities they were promised.”

Policy Exchange said a typical graduate leaves university with around £50,000 of debt – and a typical graduate who took out a loan between 2012 and 2023 needs to earn £66,000 just to cover the interest on their student debt.

Official figures released earlier this month found more than one million people between 16 to 24-year-old were not in education, employment or training – the highest level in more than 12 years.

The report blames a combination of mass expansion and marketisation of universities as being responsible for the crisis.

Suella Braverman MP, Reform UK spokeswoman for education, skills and equality, said:

“Policy Exchange’s report provides a detailed analysis of all that is wrong with our rigged university system.

“Our young people have been sold a lie about university, wasting three years of their lives to get massively into debt, while we have a chronic shortage of nurses, builders and care workers.”

She added: “Policy Exchange’s report argues we have a funding system that does not enjoy the confidence of the public, and yet subjects universities to year-on-year real terms cuts while loading graduates with debt. We have a regulatory system that is heavy-handed and costly – and yet does not provide ministers or the public assurance that quality and standards are maintained. We have a system that was intended to have the student at its heart – and yet struggles to supply basic needs such as a liveable maintenance allowance, available accommodation or mental health support.”

The think tank made 40 suggestions to reform the higher education system, including making overpayments on loans tax deductible, freeze tuition fees for five years and abolish real interest rates on Plan 2 Student Loans.

It also suggested capping the proportion of firsts and 2:1s each institution can award at a maximum of 15% firsts and 60% combined 2:1s and firsts.