Do Russell Group Graduates Really Earn More? What HMRC Data Shows

It is one of the most persistent beliefs in UK education: go to a Russell Group university and you will earn more. Parents repeat it. School careers advisors build entire guidance sessions around it. And university league tables reinforce it every year.

But is it actually true? And if so, by how much?

We looked at HMRC tax records — not surveys, not self-reported data, but actual earnings tracked through the tax system — to find out what Russell Group graduates really earn compared to everyone else.

The Short Answer

Yes, Russell Group graduates tend to earn more. But the premium is smaller than most people think, it varies enormously by subject, and it largely disappears in certain fields. The institution on your degree certificate matters far less than what you studied and what you did with it.

What the HMRC Data Actually Shows

The Longitudinal Educational Outcomes (LEO) dataset tracks every UK graduate’s earnings through PAYE records at 1, 3, 5, and 10 years after graduation. It is the most comprehensive source of graduate earnings data in the country.

According to the latest LEO data (tax year 2022-23), the median graduate earns approximately £34,000 ten years after graduation. Russell Group graduates earn a median of approximately £40,000-42,000 at the same point — roughly 18-24% more.

That sounds significant. But when you control for subject, the picture changes dramatically.

Subject Matters More Than Institution

Consider two graduates, both ten years into their careers:

• An Economics graduate from a non-Russell Group university earns a median of approximately £55,000-60,000
• A Creative Arts graduate from a Russell Group university earns a median of approximately £30,000-33,000

The Economics graduate from a “lesser” university earns nearly double the Creative Arts graduate from an elite one. This pattern repeats across the data.

Here are the median earnings 10 years after graduation by subject, regardless of institution:

Subject	Median at 10 Years	Employment Rate
Economics	£68,600	83.7%
Medicine and dentistry	£61,000	89.3%
Mathematical sciences	£51,500	86.9%
Engineering	£50,400	86.2%
Physics and astronomy	£48,500	84.1%
Computing	£44,900	84.1%
Law	£40,500	86.0%
Business and management	£39,400	84.3%
Nursing and midwifery	£35,400	90.4%
Psychology	£32,100	87.4%
Creative arts and design	£28,100	83.3%
Education and teaching	£27,700	86.6%

Source: LEO Graduate Outcomes, Tax Year 2022-23, First-degree, UK domiciled

The gap between the highest-earning subject (Economics at £68,600) and the lowest (Education at £27,700) is £40,900 — nearly 150%. The Russell Group premium of 18-24% pales in comparison.

Where the Russell Group Premium Is Real

The Russell Group advantage is most significant in subjects where:

1. Employer prestige bias is strong

In law, finance, and management consulting, many top firms recruit exclusively from a handful of universities. If you want to work at a Magic Circle law firm or a bulge bracket investment bank, a Russell Group degree (particularly from Oxford, Cambridge, LSE, or Imperial) genuinely opens doors that may otherwise remain closed.

2. Research quality affects teaching

In STEM subjects — particularly physics, chemistry, and engineering — Russell Group universities tend to have better-funded labs, more active research programmes, and stronger industry partnerships. This translates to better practical training and more relevant skills.

3. Alumni networks matter

In fields where career progression depends on connections (media, politics, consulting), Russell Group alumni networks can provide a measurable advantage. This is harder to quantify in the data but shows up anecdotally.

Where the Russell Group Premium Barely Exists

In several fields, where you studied matters very little:

Nursing and healthcare — Regulated professions with standardised training. A nursing degree from a Russell Group university leads to the same NMC registration as one from a post-92 university. Starting salaries are identical (NHS Agenda for Change bands). At 10 years, the median is £35,400 regardless of institution.

Education and teaching — Similar story. QTS is QTS. Teachers are paid on the same scales. The Russell Group premium in education is negligible.

Computing and tech — Increasingly, tech employers care about skills and portfolios over institution names. A strong GitHub profile from a non-Russell Group computing graduate will often beat a Russell Group graduate with only academic credentials. The data shows a small institutional premium early on, but it narrows significantly by year 5.

Creative industries — Portfolio-based careers (design, film, music, writing) are almost entirely meritocratic in terms of hiring. Your showreel matters more than your degree certificate. Creative arts graduates earn £28,100 at the 10-year mark with minimal variation by institution type.

The Hidden Factors

The raw earnings gap between Russell Group and non-Russell Group graduates is partly explained by factors that have nothing to do with teaching quality:

Prior attainment — Russell Group universities have higher entry requirements. Students who get AAA at A-level would likely earn more than students who got BCC regardless of where they studied. The university did not create the ability — it selected for it.

Social background — Students from wealthier families are overrepresented at Russell Group universities. They have access to unpaid internships, professional networks, and financial safety nets that support career risk-taking. This boosts their earnings independently of their education.

London weighting — Several Russell Group universities are in London (UCL, Imperial, KCL, LSE, Queen Mary). London salaries are 20-30% higher than the national average, which inflates the Russell Group median without reflecting educational quality.

Subject mix — Russell Group universities offer proportionally more high-earning subjects (Medicine, Economics, Law, Engineering) and fewer low-earning ones (Education, Performing Arts). The institutional average is partly a reflection of the subject portfolio.

What This Means for Students Choosing Universities

If you are deciding between universities right now, here is what the data actually suggests:

1. Choose your subject carefully — The difference between subjects (£40,900) dwarfs the difference between institution types (£6,000-8,000). If you are choosing between Economics at a non-Russell Group university and History at a Russell Group one purely for career earnings, the Economics degree wins.

2. Consider the specific university, not the group — “Russell Group” is a lobbying organisation, not a quality mark. Some non-Russell Group universities (Bath, Loughborough, St Andrews) outperform many Russell Group members in specific subjects. Look at subject-level data, not institutional branding.

3. Check the LEO data yourself — The graduate outcomes data on CareerMetrics lets you compare earnings by subject with real HMRC figures. Use it.

4. Factor in debt and living costs — A Russell Group degree in London means higher living costs. If the earnings premium in your subject is small, the additional debt may not justify the expense.

5. Think beyond the first job — The Russell Group premium is largest in year 1 (when brand name matters most for getting hired) and shrinks over time as experience and performance take over. By year 10, what you have done matters far more than where you studied.

The Bottom Line

The Russell Group premium is real but modest, inconsistent across subjects, and partly explained by selection effects rather than educational quality. For some career paths (law, finance, medicine), it matters. For many others (tech, healthcare, education, creative industries), it is negligible.

The most important choice you make is not which university to attend — it is what to study and what you do with it afterwards. The data is unambiguous on this point.

Explore the full graduate earnings data on our degree outcomes page, or use the ROI calculator to see whether your specific degree pays for itself.