Give Everyone £10,000 when They Turn 25, Says Thinktank
May 9, 2018
Young people across the UK should each be given £10,000 as they reach the age of 25 in order help rebalance wealth and financial security levels across generations.
That’s according to the Resolution Foundation, a prominent thinktank which commissioned a diverse panel of experts to look at issues relating to intergenerational economics and fairness.
The resulting report describes proposed payments to young adults as being a “citizen’s inheritance” and says the money would be designed to give people a better chance of getting on the property ladder, pursuing education opportunities or starting a business.
Authors of the report say that the payouts to young people would also help reduce resentment towards older generations who are perceived by many as having benefitted unfairly from house price rises and generous pension saving schemes that are no longer available.
Outlining its key policy recommendations, the Resolution Foundation says: “From 2030, citizen’s inheritances of £10,000 should be available from the age of 25 to all British nationals or people born in Britain as restricted-use cash grants, at a cost of £7 billion per year.
“The citizen’s inheritance should have four permitted uses: funding education and training or paying off tuition fee debt; deposits for rental or home purchase; investment in pensions; and start-up costs for new businesses that are also being supported through recognised entrepreneurship schemes.”
Another of the foundation’s recommendations is that the so-called citizen’s inheritance payments should be phased in over the course of the next decade with 34 and 35 year olds receiving £1,000 each from 2020.
Money for the payments should be funded through a new “lifetime receipts tax” and by ending existing government-backed matched savings initiatives including both ‘Help to Buy’ and ‘Lifetime ISAs’, the thinktank suggests.
In the conclusion to its report, the Resolution Foundation insists that the introduction of a citizen’s inheritance would “demonstrate that the intergenerational contract can be renewed for the 21st century”.
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