Younger generations should receive a £10,000 payment while pensioners see a tax hike, says a new report.
The report is designed to focus on steps that may improve inter-generational fairness in the U.K.
Pay the Young, Tax the Old
The Resolution Foundation, a research and policy think tank, was behind the report. Within it, it stated that the N.H.S. requires more radical changes such as these in order to achieve better funding and to maintain social cohesion.
The Resolution Foundation report claims its goals are to better the outcomes of individuals whose incomes are low or modest. The organization’s chairman, Lord Willetts, explained that a “broken down” point has been reached between the young and the old in the United Kingdom. He stated that young people will only become “increasingly angry” if action is not taken.
Think Tank Recommendations
According to the Resolution Foundation’s report, the following should be done to improve the inter-generational gap and to rescue N.H.S. funding.
- Make a £10,000 payment to everyone when they turn 25 years old. This payment would be funded be a replacement of the inheritance tax, the “lifetime receipts tax”. The idea is to provide the young with the type of money they would need to make a down payment on a home, increase their skills or education, or start a business.
- The council tax would be eliminated and replaced with a new form of property tax. This would specifically target wealthier homeowners.
- Use the new property tax proceeds to slash stamp duty in half for first-time home buyers and to boost social care funding.
- Require that people working over the state pension age have their earnings subject to National Insurance contributions. This “levy” would bring the N.H.S. £2.3 billion, said the report.
Addressing Generational Concerns
Willetts’ argument is primarily focused on two generational struggles. The former universities minister under David Cameron pointed out that older generations are concerned about strains on healthcare. On the other hand, younger generations feel they are being walled out of the housing market.
Willetts believes that the recommendations within the Resolution Foundation report will help to ease the rising tensions between the older and younger generations.