Universities UK has published a report conducted by London Economics setting out the economic contribution of higher education (HE) and research activities in the UK. Together, the report finds that the total economic impact of the UK higher education sector on the UK economy is more than £265 billion.

The report considers the impact of the UK HE sector’s teaching, research, and innovation activities on the UK economy over the 2021-22 academic year. It found that, for every £1 of public money invested in the HE sector across the UK, £14 is put back into the economy.

The headline £265 billion figure includes the impact of:

• Research and knowledge exchange: £63 billion (£54 billion for research, which includes £40 billion from improved private sector productivity and £14 billion from the impact of higher education sector spending on research, and £9 billion for knowledge exchange).
• Impact of teaching and learning: £95 billion.
• Impact of educational exports: £37 billion.
• Impact of higher education provider (university) expenditure: £70 billion.

The report also highlights the net benefit to the exchequer for each HE student compared to somebody who could have gone to university but chose not to. In each case, the net benefits were as follows:

• Other undergraduate (eg HND/HNC): £58,000
• First degree: £75,000
• Other postgraduate: £119,000
• Postgraduate taught: £163,000
• Postgraduate research: £215,000

The report can be accessed in full at the Universities UK website.

(This Bulletin article was the subject of a ResearchConnect news alert.)