Overview
- Official figures from the UK Statistics Authority revealed that between March and May 2025, graduates accounted for roughly 11.9% of Universal Credit claimants, with 639,000 degree‐holders receiving benefits.
- Conservative MP Neil O’Brien warned that debt from low‐value courses is driving graduates into welfare, while shadow work and pensions secretary Helen Whately cited course relevance issues, Labour’s tax policies and AI competition as barriers to early‐career opportunities.
- Prof Alan Smithers said many so-called “Mickey Mouse” degrees leave students without employer-relevant skills, noting UCAS Clearing listings for novelty courses in esports, social media and digital content creation.
- The ONS Labour Force Survey found 88% of graduates were in employment compared with 68% of non-graduates and reported that the median real-terms salary for graduates under 65 rose by £500 to £26,500.
- A government spokesman affirmed a commitment to helping claimants into work under welfare reform principles, with officials considering tougher eligibility criteria and stricter oversight of university courses.