Report: '£10k given to young, pensioners should be taxed more'

News


09 May, 2018

Report: '£10k given to young, pensioners should be taxed more'

A payment of £10,000 should be given to all young British adults when they reach the age of 25, while UK pensioners should be taxed more, according to a new report into intergenerational fairness in Britain.

The Resolution Foundation’s document has concluded that these somewhat radical measures are required in order to better fund the NHS and maintain social cohesion.

The Foundation’s chairman Lord Willetts stated in the report that the contract between the younger and older generations had “broken down”.

The former conservative minister said: “Britain's contract between generations lies at the heart of society. As families we provide for our children and parents at different times. We expect the state to support these natural instincts - but too often it is tilted in the opposite direction.

“Many people no longer believe that Britain is delivering on its obligations to young and old. But our commission shows how Britain can rise to this challenge.

“From an NHS levy to put healthcare on a firmer financial footing, to building more homes and a Citizen's Inheritance to boost young people's career and housing aspirations, our report shows how a new contract between generations can build a better and more unified Britain.”

The Foundation’s intergenerational commission report calls for an NHS levy of £2.3bn funded by higher national insurance contributions by those over the age of 65, while all young people should receive a £10,000 bonus payment at the age of 25 to put towards a property deposit, start a business or improve their education.

The report proposed raising the funds by abolishing inheritance tax and replacing it with a lifetime limit for recipients of £125,000 before tax kicks in, which in turn would raise £5bn.

In addition, the report urges the government to abandon the council tax system, rather substituting it with a new property tax, raising more money from wealthier homeowners.