University education is known to generate significant earnings returns, but its full value may be understated without considering its wider effects on individual wellbeing. This paper estimates the complete lifetime return to higher education in the UK by combining income effects with monetised wellbeing effects. Building on recent evidence, we estimate the full discounted lifetime benefit of attending university is £146,000 on average, with approximately one quarter of this arising from non-pecuniary gains. For students at the margin of enrolment, returns remain substantial at £78,000. These benefits are achieved at no long-run fiscal cost to the government.

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10 July 2025     Paper Number CEPOP71

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This CEP occasional paper is published under the centre's Community Wellbeing programme.

This publication comes under the following theme: Targeting policy at wellbeing, Targeting policy at wellbeing