Economic incentives and financial gains from pursuing innovative higher education, both within and beyond the creative sectors
The UK Government's Industrial Strategy, announced in November 2024, designated the creative industries as one of eight key growth sectors. This designation was further reinforced by the DCMS Creative Industries Sector Plan in June 2025, emphasising sustainability, net zero goals, and circular economy principles within creative education and industries [1].
Professor Hasan Bakhshi MBE, the Professor of Economics of the Creative Industries and Director of Creative PEC, spearheads research on this topic. One of his recent policy briefs examines international trade in the UK's creative industries, focusing on innovation in seaside resorts and country towns [2].
The creative industries, including the UK's leading television production sector, are expected to see a high demand for creative skills due to the fourth industrial revolution. This briefing also highlights the role of higher education institutions, particularly those serving creative disciplines like the University for the Creative Arts (UCA), in embedding sustainability and systemic change in creative education, responding to government priorities for environmental responsibility [1].
However, there is fragmentation and siloed efforts within the creative industries regarding policy action on sustainability, suggesting gaps remain in effectively coordinating government policy with creative education outcomes [1]. The government continues to emphasise skills development aligned with priority sectors; the Creative Industries remain the largest employment sector in 2025, indicating ongoing support for creative pathways through education [3].
Despite sector-wide recognition, there is concern about funding pressures and quality assurance in higher education. Recent government announcements suggest that university bailouts could be contingent on the dropping of 'low value' courses, potentially affecting creative education [3]. However, there is no direct recent evidence in the sources about government policy enforcing the dropping of low-value courses specifically in creative higher education, nor about the Augar Review’s recommendations being fully adopted or driving cuts in this part of the sector [2].
The policy brief, titled Policy Insight: Graduate motivations, published on 31st July 2020, discusses the potential growth of the creative industries through three specific strategies [2]. New research by the PEC's researchers at the University of Sussex demonstrates the value of creative higher education by establishing a link between studying a creative subject at university and gaining meaningful graduate employment in creative work [2].
In contrast, a recent report from the Institute for Fiscal Studies (IFS) found that lifetime earnings for those who studied a creative arts and design degree are no better than for those who didn't go to university at all [3]. The policy briefing sets out areas for possible policy action in the Skills, Jobs, and Education sectors of the creative industries [2].
The briefing also warns that disruptions to the creative talent pipeline would likely damage the sustainability of the UK's fast-growing creative industries and other sectors which increasingly rely on creative work. This policy brief outlines recommendations for transitioning to more sustainable theatre production [2].
A photo accompanying this article was taken by Retha Ferguson. The policy brief 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 [2].
In 2018, the creative industries contributed £111.7bn to the UK economy, accounting for 5.8% of total UK GVA [3]. The creative industries have grown at a rate more than twice that of the total UK economy over the last 10 years [3].
Martha Bloom, a researcher at the Science Policy Research Unit (SPRU), University of Sussex, is one of the authors of the policy brief [2].
References:
[1] Bakhshi, H., & Bloom, M. (2020). Policy Insight: Graduate motivations. London: Creative Industries Policy and Evidence Centre and University of Sussex.
[2] Bloom, M., & Bakhshi, H. (2020). Policy Insight: Graduate motivations. London: Creative Industries Policy and Evidence Centre and University of Sussex.
[3] Creative Industries Federation (2019). The Creative Industries: A Force for Change. London: Creative Industries Federation.
- The UK's Industrial Strategy, announced in 2024, identified the creative industries as one of eight key growth sectors, a designation further reinforced in the DCMS Creative Industries Sector Plan in 2025.
- Professor Hasan Bakhshi MBE, the Director of Creative PEC, leads research into this sector, with a recent policy brief focusing on international trade in the UK's creative industries, particularly in seaside resorts and country towns.
- The creative industries, including the leading television production sector, are projected to experience high demand for creative skills due to the fourth industrial revolution.
- This briefing also underscores the role of higher education institutions, like the University for the Creative Arts (UCA), in fostering sustainability and systemic change in creative education.
- Fragmentation and siloed efforts in the creative industries are noted concerning policy action on sustainability, indicating gaps in coordinating government policy with creative education outcomes.
- The government continues to emphasize skills development linked to priority sectors, with the Creative Industries remaining the largest employment sector in 2025.
- There is concern about funding pressures and quality assurance in higher education, as recent announcements suggest that university bailouts could involve dropping low-value courses, potentially impacting creative education.
- However, there is no recent evidence showing direct government policy enforcing the dropping of low-value courses specifically in creative higher education.
- A policy brief, titled Policy Insight: Graduate motivations, published in 2020, discusses potential growth strategies for the creative industries.
- New research by the PEC's researchers at the University of Sussex demonstrates the value of creative higher education by linking its study to gaining meaningful graduate employment in creative work.
- In contrast, a report from the Institute for Fiscal Studies found that lifetime earnings for those who studied a creative arts and design degree are no better than for those who didn't attend university at all.
