University graduates earn on average about a quarter more than young people who leave school aged 18, a study has suggested.

Higher education organisation Universities UK measured the economic impact of getting a degree.

It found average additional earnings of £160,000 over a working life.

The report found “no evidence of an erosion of the graduate premium despite increasing numbers of graduates” as the demand for graduates has also continued to rise.

Degrees, such as medicine, law, sciences and languages, deliver higher returns than arts and humanities.

While the graduate premium in earnings for a medicine degree is £340,315, an arts graduate can expect to receive only an additional £34,494, over a working lifetime.

The report also said graduates were less likely to be unemployed.