Graduates earn £3k more on starting salaries if parents don’t have a university degree, new study shows

Graduates who were the first in their family to go to university have an average starting salary of almost £3,000 more than those whose family members attended university before them.

According to two surveys commissioned by Universities UK (UUK), graduates with no prior family history of going to university earned an average starting salary of £30,111 whereas those who did have family attend university earned £27,754.

The two surveys involved more than 3,500 UK graduates and a similar number of business leaders to “quantify” the value of going to university.

Nearly 60% of business leaders who were the first in their family to attend university said it helped them become senior faster while 51% said it helped fast-track their career, according to UUK.

The surveys found 78% of graduates and 71% of business leaders who were first-generation university students said attending opened doors into companies for them.

Data from all graduates who participated in the UUK survey showed 73% credit going to university with enabling them to find the job they wanted.

Almost all of participating business leaders said university graduates reach managerial positions faster as a “direct result” of going to university and 85% would expect to see graduate employees earn more than non-graduates after three years.

Vivienne Sterne, chief executive of UUK, said the new research “clearly demonstrates the value that graduates benefit from when they go to university in the UK”.

The surveys were conducted by Censuswide among 3,505 UK graduates between 16 and 26 June and 3,506 business leaders across the UK between 16 and 27 June.

University of Derby graduate Tamzin Lena Burch, who was first in her family to attend university, said her university experience allowed her to “unlock” her potential and “changed the trajectory” of her life.”

She added: “For me, as a first-generation, neurodiverse student from a working-class background with no A-levels, university steered me onto a path I had no idea was possible for me to take.

“I’m now a first-class graduate with a marketing job in financial services and a whole new appreciation for education – I am privileged that my potential was able to be unlocked.”

The new research comes after Universities UK has warned  students may face tough competition for places at top UK universities this summer due to a “major expansion” of applicants following the Covid pandemic.

Professor Sir Steve West, president of Universities UK, said that some Russell Group universities, including Oxford and Cambridge, may not offer as many vacancies on courses in clearing this year because of capacity issues.

Rishi Sunak earlier this month also announced plans to cap the number of students that can be accepted on to “poor quality”, so-called ‘Mickey Mouse’, university degrees in England.

The Prime Minister said: “Too many young people are being sold a false dream and end up doing a poor quality course at the taxpayers’ expense that doesn’t offer the prospect of a decent job at the end of it.

“That is why we are taking action to crack down on rip-off university courses while boosting skills training and apprenticeships provision.”

However, Ms Sterne said recent political rhetoric about “rip-off universities” has to be countered with evidence that shows going to university is a “valuable investment” to a person and “wider society”.

Opposition MPs said the new measures are a “cap” and an “attack” on young people’s aspirations, restricting them from their choices.