Resolution Foundation report: A New Generational Contract

Those who are pessimistic about young adults’ chances of enjoying better living standards than their parents outnumber optimists by five to one.

This is according to the May 2018 report on intergenerational fairness (pdf)  by the Resolution Foundation.

The report argues that there is a crisis of generational progress, far larger than millennial or the financial crisis, which is undermines the ‘intergenerational contract’ which assures quality of life through generations.

The report’s findings include:

  • In contrast to older generations, young adults are making no income progress and accumulating much less wealth
  • Millennial families are half as likely to own their home by age 30 as baby boomers were by the same age
  • Future pensioners are exposed to retirement income risks.

Additionally, there are concerns for older generations. The UK’s ageing population means public spending on health, care and social security is set to rise by £24 billion by 2030.

To strive for intergenerational fairness, the report proposes policy recommendations, including:

  • £2 billion increase in funding for social care
  • £1 billion ‘Better Jobs Deal’ for younger workers, and £1.5 billion to fund technical education routes
  • Community land auctions for house building
  • Abolish inheritance tax and use extra revenues to introduce a £10,000 ‘citizen’s inheritance’.

Read the report in full (pdf).