A new report reveals that public confidence in the value of university degrees is eroding, with just 47% of people now believing that a degree leads to a good job, down from 53% five years ago. The findings, from the Higher Education Policy Institute (HEPI), underscore a growing scepticism about the return on investment of higher education, particularly among younger generations and those from lower-income backgrounds.
Declining trust across demographics
The HEPI survey of over 2,000 adults found that confidence in degrees is lowest among 18- to 24-year-olds, only 38% of whom think a degree improves job prospects. Among those from households earning under £20,000, just 41% agreed, compared with 56% of those earning over £50,000. This suggests that the cost of tuition and living expenses, coupled with uncertain graduate outcomes, is disproportionately affecting the poorest.
Nick Hillman, director of HEPI, said: 'These figures are a wake-up call. If universities and ministers do not act to restore faith in degrees, we risk creating a two-tier system where only the wealthy see higher education as worthwhile.'
Impact on applications and funding
The trend is already visible in application data. UCAS figures for 2026 show an 8% drop in applications from 18-year-olds in England, with the steepest declines in courses with weaker graduate employment records. Meanwhile, university funding is under strain, with real-terms cuts to teaching grants and a freeze on tuition fees in England since 2017. The Office for Students (OfS) warns that financial sustainability is a growing concern, with several institutions at risk of insolvency.
The report recommends that the government should introduce a more flexible system of higher education funding, including lower interest rates on student loans and a review of the repayment threshold. It also calls for universities to provide better data on graduate outcomes and to improve teaching quality, particularly in courses with high drop-out rates.
Government response and political context
Ministers have so far resisted major reforms, but the issue is gaining political traction. The shadow education secretary has called for a 'radical rethink' of the university system, including a two-year degree option and a greater focus on technical education. The Liberal Democrats have proposed a graduate tax to replace tuition fees.
A Department for Education spokesperson said: 'We are committed to ensuring that higher education delivers for students and the economy. We are already taking steps to improve transparency and value for money, and we will consider the HEPI report carefully.'
However, critics argue that the government's approach has been piecemeal. The OfS has recently fined several universities for poor-quality courses, but there is no overarching strategy to address the confidence crisis. The HEPI report warns that without decisive action, public trust may continue to erode, with long-term consequences for social mobility and the skills base.
