£1,600-a-year pay gap for graduates from poor homes in London, study finds

Graduates from disadvantaged homes in London end up earning £1,600 a year less on average
Unsplash/Jane Carmona

Graduates from disadvantaged homes in London end up earning £1,600 a year less on average than their middle-class counterparts because of the “class gap”, a study has found.

A typical 25-year-old graduate from a poorer background earns £1,664 less than their contemporaries who have grown up in the capital’s wealthiest homes, according to the Social Market Foundation.

The gap widens to £7,904 between top-earning middle-class graduates and high-flying graduates from deprived backgrounds.

The independent think tank said the factors that create a “class ceiling” include a lack of social connections or work experience, and hiring practices being slanted against those from lower socio-economic backgrounds.

Foundation director James Kirkup said: “The findings suggest social mobility depends on a lot more than education.

"There is a lot of stuff that schools can’t deal with on their own; the soft skills, the social connections, the ability at university to do internships and acquire skills beyond just your academic attainment.

“You need to talk about the non-academic stuff that makes it harder for poor kids to grow up to be rich adults.”

Chief economist Kathryn Petrie, the report’s author, said schools in London are “great” for children from deprived homes but that these pupils still face a “real disadvantage” later when it comes to getting a job and earning.

The foundation argues the research challenges the narrative that the capital is a social mobility success story.

They used survey data and interviews with employers and Londoners aged 24 to 28 to compile the report. It found that disadvantaged youngsters do “exceptionally well” until the age of 16 in the capital’s education system, which does equally well sending pupils from tougher backgrounds to university.

The report’s recommendations include compulsory work experience placements in Year 12 and the return of maintenance grants. The think tank also called on the Mayor to challenge big recruiters to offer internships and other opportunities for students from low-income homes.

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