Economic incentives and financial benefits of creative higher learning, both within and beyond the creative sectors
In a rapidly evolving landscape, the role of creative education and the creative industries in the UK is undergoing significant changes. A policy briefing, titled "Policy Insight: Graduate motivations", authored by Martha Bloom and Professor Hasan Bakhshi MBE of the Creative Industries Policy and Evidence Centre and the University of Sussex, sheds light on the current state and potential future of these sectors.
The briefing is based on a PEC Discussion Paper: Creative Industries Innovation in Seaside Resorts and Country Towns, and it sets out areas for possible policy action in the field of authors' earnings in the UK. It also examines international trade in the UK creative industries.
The Augar Review, which recommended that subjects which fail to provide 'value for money' should receive less government subsidy, has caused concern among practitioners, recipients, and beneficiaries of creative education. New research by the PEC's researchers at the University of Sussex, however, demonstrates the value of creative higher education. This research establishes a link between studying a creative subject at university and gaining meaningful graduate employment in creative work.
The current impact of UK higher education funding policies on creative subjects and the creative industries reveals mixed effects. On one hand, some universities have experienced significant government grant reductions, up to 65%, which sector leaders warn could cause course cancellations and threaten specialist subjects like media studies, journalism, publishing, and related creative courses. Funding cuts also affected the student premium fund, which supports disabled students and hardship funds, potentially impacting creative students disproportionately.
On the other hand, despite overall financial constraints, very high-cost STEM subjects and allied health subjects receive maintained funding at 2024-25 levels. Though creative subjects like performing arts and creative arts are noted in funding guides, detailed high-cost supplement funding is more formally defined for STEM rather than creative disciplines.
Despite these challenges, the UK government’s Industrial Strategy (November 2024) and the DCMS Creative Industries Sector Plan (June 2025) explicitly identify creative industries as one of eight key growth sectors. This supports a strategic recognition that aligns with higher education’s role in providing skilled graduates for creative employment.
Conferences and expert calls stress embedding sustainability and environmental responsibility in creative education as vital for future industry practices, addressing fragmentation and the need for coordinated policy and standards. Universities such as the University for the Creative Arts are highlighted as leaders in integrating sustainability into creative curricula.
Broader educational reforms show government interest in supporting expressive and creative arts subjects as core curriculum areas, not just extracurricular activities. However, the focus on academy schools and teacher recruitment reform may indirectly affect creative education pathways.
The creative industries are expected to see a high demand for creative skills due to the fourth industrial revolution. The UK television production sector is one of Britain's leading creative export sectors, contributing £111.7bn to the UK economy in 2018, accounting for 5.8% of total UK GVA.
The creative industries have grown at a rate more than twice that of the total UK economy over the last 10 years. The new research suggests that disruptions to the creative talent pipeline would likely damage the sustainability of the UK's fast-growing creative industries.
In summary, current UK higher education funding policies place financial strain on some institutions affecting creative subjects, with reductions risking course availability. Nonetheless, the creative industries remain a government priority with policy moves toward sustainability integration and sector growth. The impact is thus a combination of funding challenges and strategic recognition that may shape the future of creative education and industries.
The paper can be referenced as Bloom, M. and Bakhshi, H. (2020) Policy Insight: Graduate motivations. London: Creative Industries Policy and Evidence Centre and University of Sussex. Available from: https://www.our website/policy-briefings/graduate-motivations-and-the-economic-returns-of-creative-higher-education-inside-and-outside-the-creative-industries.
[Photograph by Retha Ferguson]
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