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‘Pay millennials £10,000 each to fund deposits’, says thinktank

The young should be given £10,000 each to help fund a house deposit or otherwise invest in their lives, according to the Resolution Foundation thinktank.

The cash could only be spent on housing, skills, entrepreneurship  and pension saving.

The Resolution Foundation says the payment should be made from the age of 25 and will cost around £7bn a year.

The thinktank says that the younger generation find it harder to save than older groups due to factors such as the rising cost of living.

A report from the Resolution Foundation says that in 1984-85 it would have taken the average 27-30 year old three years to save for an average deposit. Now it would take the same individual 19 years.

As such, the thinktank says the “tacit agreement” that the young care for the old while the old help improve the young’s quality of life is breaking down.

The Resolution Foundation says the Government could fund the £10,000 payments by scrapping inheritance tax and replacing it with a ‘lifetime receipts tax’ that allows fewer exemptions.

This, combined with a lower tax-free allowance and lower tax rates should create enough cash to fund the proposed ‘citizen’s inheritance’.

The thinktank says: “The effects would be profound. A £10,000 boost today would at least double the wealth of more than six-in-ten adults in their late 20s.”

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  • Freddie Fudpucker 8th May 2018 at 11:05 am

    The younger generation do not bother to save because they just want everything now. The aspect of paying for it is not important. Ref recent article that borrowers blame the lenders if there are issues on arrears ! It is a mentality and education problem that could/should be addressed by responsible parenting, but as many parents seem to lack any financial intelligence themselves, that is obviously fraught with issues.