Diplomas and Dividends: Is a Degree Worth It in 2025?

After decades of promoting higher education, some people in the UK are now questioning the value of a university degree in 2025. With tuition fees in England at £9,250 per year (plus living costs), a typical student can graduate with approximately £45,000 of debt. The rising cost of studying has led commentators to ask plainly: Is a degree still worth it?

This article examines that question from multiple perspectives. Let’s explore the graduate return on investment (ROI) in earnings and employment prospects, as well as the less tangible benefits such as skills and networks, plus tips to maximise the value of a degree.

Intangible ROI: beyond the pay cheque

While much of the debate surrounding the value of higher education focuses on salaries and debt, a university education offers numerous intangible benefits that are highly valued by both graduates and employers. 

These benefits include:

Advanced skills and knowledge

Universities cultivate high-level cognitive and transferable skills, including critical thinking, research, communication, and problem-solving, along with specialised knowledge in your field. These skills can boost your labour market value. Many employers respect graduate skills more than specific qualifications: a university degree serves as evidence of the ability to learn and handle complex tasks.

Confidence and personal growth

The university experience is often transformative, both personally and academically. Faced with challenges such as independent living, demanding coursework, and various social situations, individuals can significantly boost their confidence and maturity. In one survey, 78% of first-generation graduates said that university increased their self-confidence. More than a quarter of graduates (28%) even described attending university as “the best decision they ever made.” This increase in self-belief and independence can benefit many areas of life, not just careers.

Networks and opportunities

Campus life provides a unique opportunity to build both professional and social networks. Students make connections with peers, lecturers, alumni, and industry professionals through classes, clubs, and events. These contacts can later support job referrals, mentorship, or collaborations. A lack of networks and insider contacts often creates barriers to entering the workforce, making university networking opportunities highly valuable. Simply being part of a university’s alumni network can open doors throughout one’s career.

Career readiness through experience

Many degrees provide opportunities to gain real-world experience, such as industrial placements, internships, or study-abroad programmes, which can facilitate the transition from school to work. Internships during university enhance your CV, teach workplace etiquette, and enable you to apply theory in practice, making you much more job-ready upon graduation. Even extracurricular activities (such as volunteering, leading a society, or part-time work) help develop skills that employers value.

Broader horizons and well-being

Higher education can enrich graduates’ lives beyond just career prospects. Research indicates that graduates tend to enjoy better health and are more active in civic duties, such as voting or volunteering, than those without degrees. Encountering new ideas, individuals from diverse backgrounds, and varied environments at university often widens one’s outlook and cultural awareness. These less tangible benefits, from lifelong friendships to a sense of accomplishment, constitute a meaningful part of the return on investment of a degree for many people.

A degree’s value isn’t only measured by earnings. The skills, confidence, connections, and experiences you gain can significantly influence your quality of life and career trajectory, even if they don’t show up directly on a payslip.

But now, let’s discuss the salary a bit more.

The financial payoff of higher education

On average, earning a degree does translate into higher pay and employment prospects. The data below demonstrates that higher education remains a sound investment for most students in purely economic terms:

• Graduates tend to earn more over their lifetimes than non-graduates: it’s often cited as a “graduate premium” of over £100,000 (net of tax and inflation) across a career. 
• By the age of 31, graduates in the UK earn approximately 32%–37% more on average than peers who could have attended university but chose not to. 
• In 2023, about 88% of working-age graduates were employed, compared to roughly 70% of non-graduates. Two-thirds of graduates held high-skill jobs, compared to only 24% of non-graduates. 
• The median salary for a working-age graduate was around £40,000, compared to £29,500 for non-graduates. 

Mind you, not all degrees yield equal returns. The subject and area of study greatly influence earning outcomes. Graduates of high-demand professional courses such as medicine, economics, engineering, or law tend to earn considerably more than the average. At the same time, fields such as the creative arts or design typically offer significantly lower salaries. 

According to the analysis from the Institute for Fiscal Studies (IFS), men who studied medicine or economics earn over £500,000 more (in present value) over their lifetime than if they hadn’t attended university. In contrast, men who studied creative arts often experience negative financial returns, meaning they earn less over their lifetime than similar non-graduates.

For women, degrees in subjects such as law, economics, and medicine typically result in lifetime financial gains of over £250,000. In contrast, degrees in the creative arts or languages usually show nearly zero net benefit. In fact, the IFS estimates that approximately one in five students would be financially better off not attending university at all, particularly those in lower-earning fields or who do not secure graduate-level employment. By contrast, the top 10% of graduate earners (often in finance, technology, or medicine) can earn more than £500,000 extra over their careers. 

The takeaway is that a degree’s ROI is highly dependent on what you study and your career path: for most, it boosts earnings significantly, but for some, it may not pay off financially.

University degrees with the highest ROI

When it comes to purely financial matters, not all degrees are equal. Some fields almost guarantee a substantial salary, while others leave you struggling with entry-level pay. Below, I’ve ranked some of the top-paying degrees in the UK for 2025 and explained why they command such salaries.

Medicine & dentistry 

Medical degrees dominate the top salaries, with junior doctors earning around £29k initially, rising quickly with specialisation. GPs start at approximately £62k, and specialists can earn over £90k. Dentistry graduates also find high demand, often starting above £45,000, and most graduates (over 98%) secure high-skilled jobs. The intensive training and professional shortages make these degrees nearly recession-proof golden tickets.

Veterinary medicine

Vets earn on a similar pay scale to doctors, starting at about £35,000—one of the highest graduate salaries. High demand for veterinary skills outside major cities, combined with limited training spots, keeps salaries high. Many UK vet graduates find employment within six months, with pay reaching around £70k with experience. The small, specialised profession makes this degree financially worthwhile.

Economics

HESA data shows that graduates with economics degrees earn approximately £35,600 fifteen months after graduation. Economics opens doors to lucrative roles in banking, finance, consulting, and policy. Strong demand, especially in London, means even entry-level analysts earn competitive salaries. Over a lifetime, the financial gains are substantial: male economics grads with a 2:1 earn about 15% more than those with a 2:2, highlighting the degree's earning potential.

Engineering 

Technology degrees rank among the top ROI options. Electrical & Electronic Engineering graduates start around £34,000, with other fields, such as Chemical Engineering, not far behind. Engineers are in high demand across various industries, including energy, infrastructure, technology, and manufacturing, driving competitive schemes. The work is skilled, so employers pay a premium. Salaries also have strong growth potential: after a few years or earning chartered status, mid-career earnings can double initial salaries, often reaching £50,000–60,000 or more. This solid starting point and growth make engineering a smart financial choice.

Computer science & AI 

The tech sector’s growth boosts the pay rankings of Computer Science degrees. Entry-level roles in the UK pay £30,000–£35,000, with specialised roles in AI, cybersecurity, and cloud often earning more. Since 87% of IT internships are paid and tech companies compete for talent, grads have leverage. Long-term, earnings are high, as senior developers and tech leads can earn six figures, especially in consulting or management roles. Tech skills are globally transferable, offering a vast job market.

Law 

The legal profession has a well-known pay dichotomy. Fresh law graduates often start as trainee solicitors at around £25,000–£30,000 (some pupillage barristers earn even less), which is a modest salary compared to other top degrees. Once qualified, salaries range from £27,000 to £60,000, depending on the firm's size and location. Experienced lawyers and partners earn six-figure salaries, with top barristers earning £150,000 to £200,000 or more per annum. These earnings make law lucrative, but it’s a marathon—big paydays take years of climbing the ladder and sometimes long office hours.

Mathematics & physics 

Degrees in pure science and maths offer solid ROI, though not as high as some engineering or finance roles. Maths grads start in the mid-to-high £20,000s, advancing into finance, IT, or data science. Physics, often requiring further study, has similar starting salaries with growth potential in research, aerospace, or tech. These fields value transferable analytical skills and problem-solving, making long-term prospects promising, despite not reaching £50,000 early. Unemployment stays low for these grads.

How to maximise the value of your degree

If you choose to invest in a degree, there are ways to help ensure you achieve the best return on that investment. Here are some strategies for students and graduates to maximise the value of a university education.

Choose the university and degree wisely 

Research degree outcomes before committing. Earnings and employment vary by subject; for example, STEM and healthcare generally offer higher salaries than the arts and media. Be aware of typical graduate earnings and demand, which can differ by university and location. When selecting a course, consider its content, accreditation, industry connections, and employment prospects.

Gain real work experience during your studies 

Don’t wait until after graduation to gain experience. Utilise your time at university to participate in internships, placements, or work projects. This practical experience boosts employability: studies show that students with work placements are more likely to secure graduate jobs, earn higher salaries, and face lower unemployment rates. A “sandwich” year or summer internships make you more attractive to employers and help you apply what you've learned. Many universities offer programmes to facilitate placements, so take advantage. Real-world experience prepares you for employment, helps you determine if a career is right for you, and expands your network.

Work hard and aim for a strong degree result

Achieving a good classification (2:1 or First-class honours) or excelling in studies can open doors. Some top employers are relaxing grade requirements, but about half of major recruiters still require at least a 2:1. Good grades demonstrate mastery and strong work habits, which are valuable in competitive fields or for postgraduate applications. Besides degrees, a portfolio of projects or research can showcase capabilities. The effort in attending classes, engaging with feedback, and seeking help pays off in skills and knowledge.

Build your network and use university resources

Networking is a valuable asset in the university environment. Connect with lecturers, attend career fairs, join societies, and engage with alumni mentoring programmes. Universities often organise employer presentations, skills workshops, and career services, so take advantage of these opportunities. Many jobs aren’t advertised publicly, so who you know can be just as important as what you know. A lack of contacts can limit graduates’ job prospects. By networking during your degree, you boost your chances of opportunities and referrals. Reach out to professors or career advisers for guidance. Their insights are invaluable during your early career. 

With higher costs and new loan rules, have a plan: choose a field to excel in, seize opportunities, and develop skills and relationships that will benefit you after graduation. A degree isn’t a guaranteed ticket to wealth, but if used wisely, it’s a powerful investment in your future, both economically and personally.

Conclusion

Ultimately, whether a degree remains worthwhile in 2025 does not have a single, universal answer. For some, the financial returns and career prospects are clear and significant, while for others, the debt and lower earning potential may not justify the investment. Beyond the numbers, however, university continues to be a place where many acquire life skills, broaden their perspectives, and establish networks that can open doors well after graduation.

In this regard, higher education should be viewed as more than just a transaction. It’s an experience that can shape identity, aspirations, and opportunities in ways that aren’t easily measured. The value of a degree depends on how it aligns with personal ambitions and how effectively students utilise the resources, connections, and skills it provides to build a fulfilling future.

Methodology

The analysis of whether a university degree is worth it in 2025 was created using a multi-source review of the most credible higher education and labour market data available. Our process included:

• Economic Impact Review: We reviewed reports from the Institute for Fiscal Studies (IFS), Universities UK, and Explore Education Statistics on graduate earnings, employment outcomes, and the long-term “graduate premium.” These sources laid the groundwork for understanding the financial benefits of higher education.
• Cost Assessment: We included official figures for tuition fees, living expenses, and student loan repayments. This ensured the financial costs of university were accurately presented alongside potential returns.
• Subject-Specific Outcomes: Degree ROI was assessed across disciplines using data from HESA, WhatUni’s salary rankings, and supporting research from Oxford College and graduate labour market statistics. This step confirmed that subject choice was a key factor influencing financial outcomes.
• Intangible Benefits: We examined survey evidence and sector research on the broader value of higher education, including skill development, confidence, networks, and well-being, from Universities UK and TASO. These benefits highlight the advantages of university life beyond salary.
• Editorial Review: LiveCareer’s editorial team verified the final analysis to ensure it aligns with real-world graduate experiences and offers practical guidance for those considering whether to pursue a degree.

This methodology ensures that the conclusions presented here capture both the financial and non-financial dimensions of higher education, giving readers a balanced framework for evaluating the value of a degree in 2025.

Sources:

• Susan Hubble, Returns to a degree
• Universities UK, "New analysis reveals graduates in every region earn at least a third more"
• Universities UK, University helps three quarters (73%) of ‘first-in-the-family’ graduates get over their imposter syndrome but, without financial support, over 4 in 10 couldn’t have afforded to go at all“
• Explore Education Statistics, “Graduate labour market statistics”
• Jack Britton, Lorraine Dearden, Ben Waltmann, Laura van der Erve, “The impact of undergraduate degrees on lifetime earnings”
• The Student Room, “Student loan repayments“
• Martin Lewis, "New student loans to cost many 50% more: Martin Lewis' 6 need-to-knows about 'Plan 5' English student finance”
• Office for Students, “Don’t leave ‘internships’ until after graduation“
• TASO, "Work experience (post-HE)"
• Micha-Shannon Smith, "How graduate salaries vary by degree subject"
• WhatUni Highest Paying Degrees
• Oxford College, "The UK Degrees With The Best Earning Potential"
• Ian Stewart, "Graduate prospects: how degrees impact future earnings"