For the UK, Higher education remains a national strength. Participation is high, outcomes are strong, and UK universities continue to attract global talent at scale. At the same time, the data reveal structural features that carry long term risks especially the system’s reliance on private funding and international students, and persistent inequalities beyond the graduate population.

For leaders thinking about skills, productivity and competitiveness, the findings matter.

Nearly six in ten UK adults aged 25–34 now hold a higher education qualification. This places the UK well above the OECD (Organisation for Economic Co-operation and Development) average of 48%. More importantly, progress has accelerated. Between 2019 and 2024, attainment rose by eight percentage points one of the fastest increases across advanced economies, matched among G7 countries only by the United States.

This matters because it signals more than scale. It shows the UK continuing to expand access to higher-level skills at a time when labour markets increasingly reward advanced education. From an economic perspective, the pipeline of graduate talent remains strong.

The data also show meaningful progress on widening participation. In UK, young adults whose parents did not complete upper secondary education are far more likely to enter higher education than a decade ago. Attainment for this group rose from 25% in 2012 to 37% in 2023.

This does not eliminate inequality, but it represents one of the strongest improvements across the OECD. In practice, many universities now educate cohorts where first-generation students are the norm rather than the exception. That reflects a significant shift in who benefits from higher education and challenges the assumption that the system remains closed to those from less advantaged backgrounds.

One of the UK’s most striking advantages lies in student outcomes. Bachelor’s completion rates are among the highest in the OECD, with around 80% of students graduating on time or shortly thereafter. The OECD average is closer to 60%.

High completion rates matter. They mean that investment whether public, private or personal translates efficiently into skilled graduates. Systems with high dropout rates absorb substantial cost without delivering equivalent economic or social returns. By contrast, the UK converts participation into outcomes with unusual consistency.

Labour market indicators reinforce this picture. In 2024, 90% of tertiary educated adults in the UK were employed, while unemployment among graduates stood at just 2.3%, one of the lowest rates in the OECD. The earnings premium also remains substantial: young graduates earn around 35% more than those with upper-secondary qualifications, rising to more than 50% at postgraduate level.

Despite ongoing debate about debt or graduate underemployment, the fundamentals remain clear. Higher education continues to deliver strong individual and economic returns.

On headline figures, the UK appears to invest heavily in tertiary education. Total expenditure per student, including research and development, reached over USD 35,000 in 2022 among the highest in the OECD.

However, this reflects the UK’s distinctive model. Universities are the primary public research performers, so research funding flows through higher education institutions rather than separate research institutes. As a result, high overall spending does not translate into generous teaching resources. In fact, pressure on teaching budgets remains acute.

More striking is the balance of funding. Public spending per student is less than half the OECD average and the lowest among G7 countries. The UK has consciously prioritised public investment in earlier stages of education, leaving universities far more dependent on private income particularly tuition fees and international students.

International students are central to this model. Around 25% of students in UK higher education come from overseas, compared with an OECD average of around 8%. The UK remains the second most popular destination globally, behind only the United States, and part of a small group of countries that collectively attract the majority of internationally mobile students.

This global appeal is a major asset. But it also creates exposure. Financial sustainability increasingly depends on immigration policy decisions that sit outside the education system. Recent restrictions have already reduced demand, and further policy shifts could amplify volatility. What the OECD data show clearly is scale; whether this remains a strength or becomes a vulnerability is now a domestic policy choice.

Recent ministerial commentary aligns closely with the OECD findings. The Government has emphasised skills, further education and participation as central to its growth and opportunity agenda, while highlighting concern about rising numbers of young people not in education, employment or training.

The contrast is telling. At the graduate and postgraduate level, the UK performs well. But below that, the system is far less effective. Adults without upper-secondary qualifications face some of the largest earnings penalties in the OECD, pointing to deep structural inequality in skills and opportunity.

Other challenges persist. Gender gaps in participation continue to widen, driven by falling male engagement. Postgraduate attainment remains only average by international standards, suggesting untapped potential in advanced skills development.

Education at a Glance 2025 confirms that higher education remains one of the UK’s most powerful strategic assets. It delivers skills, supports productivity, and underpins global competitiveness. But it also highlights a model that is finely balanced.

Heavy reliance on private funding, exceptional dependence on international students, and sharp inequalities beyond the graduate population create long-term risks if left unaddressed. For business leaders, educators and policymakers, the question is not whether the system works it clearly does but how resilient it is to future shocks.

The forthcoming Post-16 and Higher Education White Paper will be critical. It must address financial sustainability, skills gaps, and the role of international students with clarity and realism. The OECD data provide a strong evidence base. The challenge now is to translate that evidence into policy that preserves what works while fixing what does not.

For the UK to remain competitive in a global knowledge economy, higher education cannot be treated as a narrow sectoral issue. It is a core component of national strategy and one that requires sustained alignment between government, institutions and business.

Source: National Centre