Category Archives: hOUSING

apply National Insurance Contributions to pensioners’ earnings, think tank reports

A new generational contract is needed to tackle the big challenges Britain faces for young and old, covering a better funded NHS and care system, a radically reformed housing market, and a new citizen’s inheritance to boost the prospects of younger generations. This is according to the final report of the Intergenerational Commission published today (Tuesday).

Over the last two years and via 22 reports, the Intergenerational Commission – chaired by Lord Willetts and including TUC General Secretary Frances O’Grady and CBI Director-General Carolyn Fairbairn – has investigated the stresses and strains on Britain’s contract between generations, and what can be done to renew it.

The generational contract reflects the fact that we judge the success of a society by how it treats its old, and believe strongly that each generation should have a better life than the one before.

However, the Commission warns that the public are increasingly questioning whether Britain is offering young people the prospects previous generations have enjoyed. This is not just confined to younger generations either, with healthcare now the most pressing area of worry for British adults.

The Commission finds that much of this pessimism is borne out by the evidence it has uncovered:

Income and wealth progress for young adults has stalled

New analysis shows that the disposable incomes of millennials at age 30 are no higher than the generation before them (generation X) at that age – despite the economy growing by 14 per cent over the last 15 years. In contrast, the incomes of baby boomers at age 30 were more than one third higher than the generation before them.
Millennials are half as likely as the baby boomers were to own their own home by 30, and are four times as likely to rent in the private sector.
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Our comment: That ‘Millenials’ are less well off than previous generations is understood, and the need for appropriate levels of funding for the NHS, though we believe that the cost should be shared by all. Older people have already lost the Age Related Tax Allowance.

Tories pledge £5 billion for schemes to boost housebuilding – but what type of housing ?

bEDROOM tAX CARTOON

The Government is pledging £5 billion of public money to increase housebuilding after Theresa May called for an end to the UK’s “homes deficit”.

Ministers will set aside £2 billion of new public borrowing to fund an Accelerated Construction Scheme to make public land with planning permission available to builders.

Meanwhile a £3 billion homebuilding fund using previously-announced cash will provide loans to stimulate new building projects where finances are tight.

Chancellor Philip Hammond and Communities Secretary Sajid Javid set out details of the funds at the Conservative party conference in Birmingham on Monday.

But Housing Minister Gavin Barwell on Sunday signaled that council housing was unlikely to be a major beneficiary of the cash. He told fringe meeting at the conference that Labour’s policy of building more council homes would increase the gap between people who owned homes and those who didn’t.

Ministers also unveiled new reforms to the planning system, with a “de facto” presumption in favour of brownfield housebuilding to drive up density and provide a targeted 21,000 homes by 2021.
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