The present paper uses British Household Panel Survey data from 1991 to 2002 to assess the extent to which labour market returns have been influenced by changes in the nature of educational supply. We find that whilst there have been substantial shifts in the returns to schooling over the period, these effects are much more pronounced for younger workers. The most notable change was the complete elimination of the premium for GCSE's over no qualifications for both males and females under 30 years old and the fall in the returns to vocational degrees for young males. The disappearance of the GCSE premium, which, it is argued, is linked to a rising demand for low-qualified workers, was found to temper the rise in inequality, while the rise in educational participation was found to substantially increase male graduate wage dispersion. (Contains 14 notes, 13 tables and 2 figures.)