It’s that time of year when students receive their A-Level results and make the big education decisions about their future – should I go to university?
Traditionally, a university is the choice for a student who wants a high-paying, successful career, with the belief that a degree will open the door to career opportunities.
Recently, numerous online articles have claimed that one does not need a university degree to earn a substantial income. The articles, which often present a one-sided view, explain how gaining a degree also comes with a student load debt that needs paying off (alternatively, a degree apprenticeship is fully funded).
Let me make it easier for you to decide whether or not to apply for a traditional university course or a degree apprenticeship?
We will also look at earnings for a graduate vs non graduate and the cost of repaying a student load, depending on future income (salaries affect the cost of a monthly repayment – not all graduates with the same student loan cost make the same repayments)
Higher Education Options – Food for Thought
- You can apply for a degree course and student finance at any age – you don’t need to attend higher education straight after A-Levels or B-Tec results.
It has been estimated that between 183,000 to 232,000 18-24-year-olds in the UK took a gap year in 2023. Additionally, around 29,920 students defer their university course each year to take a gap year.
Source https://www.gooverseas.com/blog/why-gap-years-more-common-in-europe-us
***Deferring university means delaying the start of your studies for a year after you’ve been accepted. You apply for the course and then request to defer your start date, typically to the following academic year.
- You can attend university and then apply for a degree apprenticeship or vice versa
A degree apprenticeship is funded by the employer and does not require a second student loan. In fact, as an apprentice, you will be paid a salary when recruited as a degree apprenticeship. And some salaries are very competitive.
- For some careers, it is a legal requirement to have a particular degree – as an example in Medicine
- The number of degree apprenticeship opportunities is rising but this depends on the job sector – competition is high
- Data highlights that graduates earn more than non-graduates
- Different universities offer different courses, and entry requirements vary per university – not all universities are the same. Also, colleges (further education) can offer higher educational courses (normally at a cheaper rate)
- A degree apprenticeship is full-time, with one day a week on average spent in education. Apprentices are paid a full-time salary and do not have to pay any tuition fees.
A clear comparison between UK degree apprenticeships and traditional university places:
Degree Apprenticeships in the UK (2022/23, England)
- In 2022/23, there were approximately 46,800 starts on degree apprenticeships (Levels 6 & 7) in England.(House of Commons Library, Explore Education Statistics)
- These starts accounted for 13.9% of all apprenticeship starts. (Explore Education Statistics)
- In the 2024–25 academic year, degree apprenticeship starts rose by 12.5% to 36,570.(The Guardian)
University Entrants/Places in the UK
- In the 2022–23 academic year, UK higher education institutions had a total of 2,937,155 students enrolled, with 2,053,520 undergraduates and 883,635 postgraduates.(Universities UK)
- Through the UCAS system in 2023, 554,465 applicants were accepted onto undergraduate courses.(Universities UK)
- Another estimate suggests around 565,000 undergraduate acceptances in the 2023 cycle.(House of Commons Library)
- For 2023/24, the total student population at UK HE institutions stood at around 2.90 million.(House of Commons Library)
Apprenticeships and traditional university: Summary
- Degree apprenticeships are growing—but still remain a small slice of overall higher education provision.
- In 2022/23, there were about 46.8k starts in England.
- Meanwhile, over half a million students were accepted into traditional undergraduate degrees across the UK in 2023.
- In terms of scale, university places vastly outnumber degree apprenticeship starts by roughly a 10-to-1 margin or more.
The cost of going to university
The cost of going to university in the UK depends on several factors, including whether you’re a home (UK) student or international, the location, and your lifestyle choices.
Tuition Fees – this can change year on year.
UK/Home Students (England, Wales, NI)
- Up to £9,250 per year for most undergraduate courses.
- Total for a 3-year course: £27,750 (not including living costs).
- This is typically covered by a student loan (from Student Finance England).
Scottish Students in Scotland
- Tuition is free for Scottish students studying in Scotland (covered by SAAS).
- Students from other UK nations studying in Scotland pay up to £9,250.
International Students
- Tuition fees typically range from:
- £10,000–£25,000/year for undergraduate courses.
- Up to £30,000+ per year for top universities (e.g., Oxford, Cambridge, medicine, engineering).
- The total 3-year cost can exceed £75,000+, excluding living costs.
2. Living Costs
Living costs vary widely depending on where you study. Below is an average annual estimate:
| Location | Estimated Cost per Year (Living Only) |
| London | £12,000–£15,000 |
| Other UK Cities | £9,000–£12,000 |
| Staying at home | £4,000–£6,000 |
These include:
- Rent: £400–£800/month (more in London)
- Food: ~£150–£250/month
- Transport: ~£30–£100/month
- Books/supplies, clothes, social, etc.
3. Total Estimated Cost (UK Student)
| Item | 3-Year Estimate |
| Tuition | £27,750 |
| Living (avg) | £27,000–£36,000 |
| Total | ~£55,000–£65,000 |
But remember: UK students don’t pay upfront. Most students will borrow their tuition fees and maintenance loans from the government (student finance England or SAAS)
The big question on most people’s lips is how much do I have to repay back? This is where the article writers question the cost of university rather than starting a degree apprenticeship. Let’s first look at the student loan repayment system for the UK and then look at the pros and cons of choosing a traditional degree or an apprenticeship.
4. Student Loan Repayments (UK)
- You repay only if you earn over £25,000/year (Plan 5, England).
- Repayment = 9% of income over the threshold.
- Loans are wiped after 40 years (Plan 5).
- Interest is based on RPI (Retail Price Index).
Example:
- If you earn £30,000, you repay 9% of £5,000 = £450/year or ~£37/month.
5. Other Costs
- Laptop, books, software: £300–£800 total
- Travel (trains, flights home): varies
- Societies, gym, leisure: ~£300–£500/year
Summary Table
| Type | Cost per Year | 3-Year Total |
| Tuition (UK student) | £9,250 | £27,750 |
| Living (outside London) | ~£9,000–£12,000 | ~£27,000–£36,000 |
| Total (UK student) | £18k–£21k/year | £55k–£65k+ |
Degree Apprenticeships in the UK
In the UK, degree apprenticeships are available across a growing range of job sectors, especially those with skills shortages.
Here’s a breakdown of the main job sectors currently offering degree apprenticeships:
1. Engineering & Manufacturing
- Civil Engineer
- Mechanical Engineer
- Aerospace Engineer
- Nuclear Technician/Engineer
- Product Design & Development Engineer
- Manufacturing Manager
Employers: BAE Systems, Rolls-Royce, Jaguar Land Rover, Network Rail
2. Digital & Technology
- Software Developer
- Cyber Security Specialist
- IT Consultant
- Digital & Technology Solutions Professional
- Data Scientist / Analyst
Employers: IBM, Google, Microsoft, BT, Capgemini, GCHQ
3. Law
- Solicitor Apprenticeship (6 years, includes SQE exams)
- Paralegal Apprenticeship (can lead to solicitor route)
Employers: Clifford Chance, Eversheds Sutherland, CMS, government legal departments
4. Health & Science
- Registered Nurse
- Radiographer
- Operating Department Practitioner
- Laboratory Scientist
- Pharmacy Technician
- Healthcare Science Practitioner
Employers: NHS Trusts, GSK, AstraZeneca
5. Business, Finance & Management
- Chartered Manager (CMDA – Chartered Management Degree Apprenticeship)
- Accountancy & Taxation Professional (leads to ACCA/ACA/CIMA)
- Project Manager
- Financial Analyst
Employers: PwC, EY, Deloitte, Lloyds Banking Group, Barclays
6. Education & Public Services
- Teacher (Postgraduate Teacher Apprenticeship)
- Social Worker
- Police Constable Degree Apprenticeship (PCDA)
- Environmental Health Practitioner
Employers: Local authorities, police forces, academy trusts
7. Retail, Hospitality & Creative
- Retail Leadership (e.g. Store Manager pathways)
- Events Management
- Hospitality Management
- Broadcasting / Media Production
- Fashion & Design (emerging)
Employers: BBC, ITV, Tesco, Hilton, Sky
8. Transport, Construction & Built Environment
- Chartered Surveyor
- Construction Site Manager
- Architectural Assistant
- Transport Planner
- Quantity Surveyor
Employers: Arup, Mott MacDonald, Kier Group, TfL, HS2
Summary Table
| Sector | Example Apprenticeships |
| Engineering | Civil, Mechanical, Nuclear, Design |
| Technology | Software, Cyber, Data, AI |
| Law | Solicitor, Paralegal |
| Health & Science | Nurse, Radiographer, Lab Scientist |
| Business & Finance | Management, Accounting, Project Mgmt |
| Education & Public | Teacher, Police Officer, Social Worker |
| Construction | Surveyor, Site Manager, Architect |
| Creative & Media | Broadcast, Marketing, Journalism |
| Retail & Hospitality | Store Manager, Hotel Manager |
Do employers prefer you to have a degree?
Employers often prefer candidates with a university degree for several reasons, though this is changing with the rise of apprenticeships and skills-based hiring.
Here’s a breakdown of the traditional logic behind their choice:
Why Employers Prefer University Degrees
1. Signal of Capability and Commitment
- A degree signals that a person can:
- Handle complex tasks and deadlines.
- Work independently for several years.
- Commit to long-term goals.
It acts as a “filter” for maturity, reliability, and work ethic.
2. Subject Knowledge / Theoretical Understanding
- Degrees provide in-depth knowledge of a field.
- E.g., physics for engineering; law for solicitors.
- This helps employees understand the “why” behind their work—not just the “how”.
3. Soft Skills Development
University can develop:
- Critical thinking
- Problem-solving
- Research skills
- Communication and teamwork
These are harder to measure but highly valued in professional roles.
4. Professional Requirements
- Some careers legally require a degree (or equivalent), such as:
- Doctors, lawyers, architects, teachers, nurses.
- Many professions require accreditation, which is built into certain degree programs.
5. Universality and Recognition
- Degrees are globally understood and standardized.
- This helps HR teams quickly compare candidates.
- Especially useful for graduate schemes or large companies processing thousands of applications.
6. Traditional Hiring Models
- Many industries have legacy systems built around graduate recruitment.
- Employers partner with universities.
- Structured graduate schemes require a 2:1 or similar.
But This Is Changing…
In recent years, many employers are re-evaluating this bias due to:
| Factor | Impact |
| Skills shortages | More focus on on-the-job learning |
| Cost of university | Employers value practical experience |
| Diverse talent needs | More companies now hire based on skills |
| Rise of apprenticeships | Companies can train & retain earlier |
Some top firms (e.g. PwC, EY, Google, IBM) no longer require a degree for many roles.
Average Salaries for Graduates
One of the biggest motivators for deciding between attending university or applying for work is the potential salary post-graduation vs the cost of attending university.
Below is a breakdown of the average salaries for graduates versus non-graduates in the UK, using the most recent official data:
Graduate vs Non-Graduate Salaries (2024)
According to UK government figures for 2024:
- Graduate median salary: £42,000 (nominal)
- Non-graduate median salary: £30,500 (nominal)
(Explore Education Statistics)
In real terms (adjusted for inflation):
- Graduates: £26,500
- Non-graduates: £19,500
(Explore Education Statistics)
Takeaway: On average, being a graduate yields a £11.5k nominal salary advantage over non-graduates, and around £7k in real value.
Lifetime Earnings Premium
The Institute for Fiscal Studies reports:
- Lifetime earnings premium over a non-graduate:
- Men: ~£430,000 (gross)
- Women: ~£260,000 (gross)
- After taxes and student loan repayments:
- Men: ~£130,000 net
- Women: ~£100,000 net
(Luminate)
Subject, Sector & Regional Variation
Salary advantages vary significantly depending on subject and field:
- Law graduates: ~£47,000 median starting salary
- Digital & IT: ~£33,000
- Finance & Professional Services: ~£33,500
- Charity/Public sector: ~£28,000
(ISE Knowledge Hub)
According to Statista (2024 data for England):
- Graduates: ~£42,000 average
- Non-graduates: ~£30,500
(Statista)
Summary Table
| Group | Median Salary (Nominal) |
| Graduates | £42,000 |
| Non-Graduates | £30,500 |
| Salary Premium | £11,500 difference |
Real terms gap: Graduates £26.5k vs Non-graduates £19.5k (??£7k advantage)
What This Means in Practice
- Graduates earn significantly more—both annually and over a lifetime—even after accounting for loan repayment.
- Subject and sector make a big difference:
- Graduates in high-paying fields like law or finance earn substantially more.
- Those in lower-paying sectors like charity or public services may see a smaller gap.
- Regional disparities also affect starting salaries, with London and the Southeast typically offering more—but often at a higher cost of living.
(Colleges in the UK, ISE Knowledge Hub)
How to decide if you need to attend University
- Does your future job require a certain University degree?
- Are you looking for a career in a job sector that doesn’t offer a degree apprenticeship?
- Do you need an income now? Apprentices are paid, whereas a student isn’t (but they can apply for a part-time job)
- Are you looking for the ‘university experience’?
- Do you have the correct entry requirements for a degree?
- Are you happy with the student loan repayment system?