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.
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.