Education no longer pays as graduate wages slump

The Scotsman reports that a university education no longer pays the way it once did in Scotland, with workers possessing degrees having seen their relative salaries nosedive over the past decade, new research has shown.

It comes as a drive to encourage more Scots youngsters into higher and further education is unveiled today with publication of a proposed overhaul of student funding.

But the educational “wage premium” is not what it was for graduates, MSPs on Holyrood’s economy committee have been told.

The number of workers north of the Border with a university degree has jumped from fewer than a quarter of the workforce a decade ago to more than a third today. But whereas a decade ago, workers could be expect a 13.3 per cent hike in their salaries for every year in higher education, today that has halved to about 7.7 per cent.

“Qualifications are not rewarded as well as they used to be ten years ago,” a submission by Dr Alexandros Zangelidis, and Prof Keith Bender of Aberdeen University states.

It comes as plans to give Scottish students a minimum income of £8,100 a year are be unveiled today as a an independent review chaired by Virgn Money chief executive Jayne-Anne Gadhia is published. It is likely to recommend enhanced loan terms and an increased loan repayment threshold.

The current minimum income of £7,250 is in place, through a mixture of loans and grants, for students who come from families with a total household income of less than £17,000. The proposals today would take that up to £8,100 for all students. University students can currently borrow up to £5,750 to help pay for their living costs. Support for colleges is lower.

Read more Education no longer pays as graduate wages slump

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