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BIS: reforms put university funding on 'sustainable footing'

The Government recognises the importance of a highly skilled workforce and that is why despite the tough economic climate we are continuing to invest in improving skills and knowledge.

More people than ever before will benefit from higher education in 2012.Our reforms put university funding on to a sustainable footing. We estimate that the cash going to universities could rise to £11 billion by 2014-15, which is an increase of 10%.

It's important that employers and the higher education sector work together to identify the skills graduates need for the future and work together to address these.

– UK Department for Business, Innovation and Skills (BIS)

Personal financial benefits from higher education

A study conducted by the Institute for Public Policy Research, also found that there are still great personal benefits from gaining higher level qualifications.

A graduate can expect to earn £98,000 more over a lifetime compared to someone with two or more A-levels - known as a "graduate premium".

After tuition fees treble to a maximum of £9,000 this autumn, this premium will fall slightly, although a graduate will still earn between £79,500 and £86,000 more over a working lifetime, depending on the level of fees they paid.

We have seen that the attainment of higher-level qualifications provides a significant boost to the UK economy, with the Exchequer gaining an additional £180,000 from a graduate over their working lifetime compared to an individual with A-levels.

– The Institute for Public Policy Research study

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Cash benefits of education revealed

University graduates
University graduates Credit: PA

Educating young people to A-level and degree standard boosts the UK's coffers by tens of thousands of pounds per student, new research shows. But the economy could be damaged if the UK fails to produce more highly skilled workers, says a report commissioned by the University and College Union.

The study shows that it costs the state around £5,000 to put a pupil through a two-year A-level course and almost £19,000 to send the average student to university.

It adds that the UK economy benefits "substantially" from individuals gaining these higher qualifications.

Overall, the Government will get an extra £180,000 back from a graduate over a working lifetime, compared to someone with A-levels.

And the return to the wider economy of a student gaining an A-level is around £47,000, the report says.

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