More than 600,000 graduates are claiming benefits
In response to a parliamentary question from the Conservative MP Neil O'Brien, the UK Statistics Authority revealed that between March to May this year 639,000 people with a level six qualification — equivalent to a degree with honours — or above were claiming universal credit, making up 12 per cent of those being paid the benefit.
The figures came from the Office for National Statistics' Labour Force Survey, which also found that 88 per cent of graduates were in employment last year compared with 68 per cent of non-graduates. There was an economic inactivity rate of almost 10 per cent among graduates and an unemployment rate of 3 per cent.
The median real-terms salary for graduates aged under 65 was £26,500, the study found — an increase of £500 compared with the previous year.
Graduates were more likely to be in work according to the survey, which was released last month. The unemployment rate was 5.6 per cent for non-graduates.
The inactivity rate — a person outside the labour force who has not been seeking work — stood at almost 30 per cent for non-graduates. These figures include the long-term sick, students and people who have taken early retirement.
The Conservative Party said that graduates were suffering because of Labour's policies. Helen Whately, the shadow work and pensions secretary, said: 'Today's graduates face the triple jeopardy of low-value degrees, a labour market crippled by Labour's job taxes and competition with AI for entry-level roles.
'The government needs to grip this challenge. Their failure to reform welfare and economic mismanagement threatens the future of a new generation. Meanwhile, the taxpayer is footing the bill for unpaid student loans and graduates on benefits.'
The annual survey by the Higher Education Statistics Agency revealed that Medicine and dentistry graduates earned nearly £10,000 more than the average university leaver after 15 months, at £37,900. The lowest salaries were paid to graduates from media, journalism and communication subjects, at almost £25,000.
The number of graduates on universal credit will fuel concern over so-called 'Mickey Mouse' degrees with high dropout rates and poor job prospects.
Before Labour took office, Rishi Sunak promised a crackdown on courses that were 'ripping young people off' by offering degree places that did not increase their long-term earnings potential. He said that one in eight university places would be scrapped.
At the time, Labour criticised Sunak's remarks, accusing his government of 'trashing' the sector.
Since taking office Bridget Phillipson, the education secretary, has increased tuition fees to £9,535 — the first increase in eight years — and increased maintenance loans.
A government spokesman said: 'We remain committed to our principles to reform the welfare system — those who can work should work, and if you need help into work the government should support you.'
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