Over 600,000 graduates claim universal credit

New figures show a concerning number of graduates are relying on universal credit.

Over 600,000 graduates dependent on benefits

Official statistics reveal that over 600,000 graduates in the UK are claiming universal credit, which accounts for 12 percent of all recipients. The data, released following a parliamentary inquiry by Conservative MP Neil O’Brien, indicates that from March to May this year, 639,000 people with degrees or higher qualifications were receiving benefits. Although the majority of graduates remain employed — 88 percent compared to 68 percent of non-graduates — almost 10 percent are classified as economically inactive and the unemployment rate among graduates stands at 3 percent. Furthermore, the median salary for graduates under 65 has risen to £26,500, showcasing a £500 annual increase.

This troubling statistic highlights an alarming trend where even a higher education does not guarantee financial stability. With 12 percent of graduates relying on benefits, it reflects growing concerns regarding the value of degrees in the workforce. While the majority of graduates find employment, the continued existence of significant economic inactivity and a low but present unemployment rate raises questions about job availability and the quality of employment graduates secure. It also emphasizes the necessity for better integration of higher education with job market demands.

Highlights

These statistics may provoke reassessment of the relationship between education and employment.