Investigating an age threshold for independence at postgraduate level

This report investigates different aspects of independence in order to test for an age at which young adults might be treated as independent from their parents to determine potential eligibility for postgraduate funding. 

Investigating an age threshold for independence at postgraduate level

This report investigates different aspects of independence in order to test for an age at which young adults might be treated as independent from their parents to determine potential eligibility for postgraduate funding.

The project arose from the specific need, identified by Postgraduate Support Scheme 2014–15 pilot projects, to determine who is most in need of support at taught postgraduate level,

The research and analysis in this report was finalised prior to the government’s Autumn Statement 2015 confirmation of a postgraduate loan scheme from 2016–17 and so precedes the confirmation of loans available to those under age 60.

The report was unable to examine parental income for non-co-resident parents, and lacked systematic evidence on subjective/​cultural expectations of the age of independence’ and parents’ obligations for supporting their adult children. However, using principle data from Understanding Society, the Labour Force Survey and HESA Student Records, the report does present the following main findings:

What is the age distribution of UK-domiciled postgraduate taught students and how does this differ by broad subject area?

Around three fifths of postgraduates are aged under 30. However they are somewhat older on average than undergraduates and their age distribution is wider. Distribution of postgraduates by age varies across field of study, with some indication that this relates to labour market position.

How can we measure young adult’s demographic and socio-economic statuses in terms of markers of independence?

At age 28, most graduates live away from parents. At age 25, most co-residential partnerships among graduates are cohabiting unions. After 28, marriage becomes more prevalent than cohabitation and a substantial majority are in one or the other relationship. Also, the proportion with dependent children is very low prior to age 25 and only starts to increase rapidly after the age of 28. After the age of 25, almost 90% of all graduates are in employment; before 25, only 45% of graduates are in managerial and professional occupations; however, after the age of 30, around 75% of graduates have such positions.

How do young graduates’ circumstances relate to their parents’ socio-economic background?
What evidence is available as to whether parents provide on-going financial support to adult children?

Graduates from lower socio-economic backgrounds tend to take longer to achieve higher managerial, administrative and professional occupations and also display smaller total gross income. Around one fifth of graduates aged 21–34 received regular or frequent financial support from parents; this diminishes with age. Among all age groups in the general population, both males and females who are economically inactive, unemployed, or full-time students, receive more parental support than those who are employed

What would the distribution of eligible/​not eligible young graduates look like if the age threshold was 25?

In order to make a very approximate estimate of the implications of (for example) adopting an age threshold for independence at 25 we apply this threshold to Understanding Society survey data. If we include only graduates’ own income, most under 25s would be ineligible for support as their parental income is too high. There are some individuals aged over 25 from disadvantaged backgrounds whose income means that they would be ineligible support. Numerically this is a small group, in part reflecting the relatively fewer numbers of students who undertake a first degree from lower social class backgrounds. However not insubstantial numbers of those aged 25 – 27 from advantaged backgrounds would qualify for support based on their own income. If partner’s income is additionally included for those in a co-residential partnership the proportion of eligible 25 – 27 year olds from advantaged backgrounds is reduced, but this makes an assumption that (often cohabiting) partners are willing to subsidize their partner’s extended education.

In order to carry out further research on the topics above, the report recommends New nationally representative evidence which examines:

  • The type, quantity and frequency of resource transfers between parents and adult (graduate) children;
  • The association between parental income (including the income of non-co-resident parents), parental socio-economic status and the socio-economic situation of their graduate offspring;
  • The costs of postgraduate study (e.g. by extending the Student Income and Expenditure Study to include taught postgraduates);
  • The characteristics of postgraduates according to their funding source, particularly whether there are particular patterns in terms of those awarded studentships and scholarships;
  • The role of family dynamics such as parental separation and repartnering in affecting the ability and willingness of parents to support extended periods of study;
  • Subjective/​cultural attitudes towards providing support for adult children, especially the age at which parents should no longer be expected to support their children;
  • The potential for externalities’ and unintended consequences of new arrangements e.g. the impact on young graduates’ partnership formation decisions.

Links:

Press release on HEFCE website