News
Joel Muckett 23 Nov 2017 12:39pm

Graduate salaries not enough to live on

Half of graduates in the UK believe starting salaries are not level with the cost of living and 49% live with their parents to sustain themselves

A survey by online loans company Satsuma found that many graduates were discontent with their salary, with only 24% agreeing that it was fair for the current cost of living.

A majority of respondents (88%) felt the city they worked and lived in affected the size of their starting salary, with London thought to pay the most.

“Our research has found that a whopping 46% of graduates would go as far as to say that they actually feel embarrassed about their level of income,” said a spokesperson for Satsuma.

“With the average debt for university leavers now at £44,000, apprentices who bypass a degree and learn on the job, may actually find themselves better off in the long run.”

The survey reflected on a 2014 report by the Sutton Trust, titled Earning by Degrees, which examined the correlation between university kudos and graduate salaries.

The report revealed that graduates from Cambridge and Oxford earned on average £7,600 (42%) more per year than graduates from post-1992 universities.

This pay gap was largely due to factors such as graduates’ demographic characteristics, A-level grades, social backgrounds, degree classes and choice of subject. However, after accounting for these the report found that those from Oxford or Cambridge still earned £4,760 (25%) more per year.

Earlier this year, a report from salary benchmarking site Emolument revealed that graduates from London School of Economics and City University were the highest paid, with graduate salaries of £38,000 and £36,000 respectively.

Research showed graduates from LSE earned twice as much as the graduates from the lowest-paid university, Cardiff Metropolitan University (£18,000).

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