Could the Government give £10,000 to everyone aged under 25?

Could the Government give £10,000 to everyone aged under 25?

Young people should be given £10,000 to help tackle a generational divide in the UK, a research and policy organisation said this week.

Could people under 25 be given £10,000 by the government?

The Resolution Foundation's final report of the "Intergenerational Commission" has suggested, among other recommendations, that everyone under 25 should be handed 10 grand.

Yes, they are being serious. The "lifetime receipts tax" could pay for a deposit on a home or fund education or a start-up. To pay for this, and a £2.3 billion windfall for the NHS, over-25s would be taxed more.

Who are The Resolution Foundation, and why would they suggest this?

The Resolution Foundation is a think-tank (research organisation), founded in 2005, which works to improve living standards of those in Britain on low to middle incomes. 

In the past the Resolution Foundation has looked into the future of the minimum wage, for example, and it helped bring about a national  "Money Guidance" service in 2010.

A current focus is intergenerational fairness. It has convened an "Intergenerational Commission" to explore ways to repair "the social contract between the generations".

Baby boomers are increasingly worried that their children may end up worse off than them. The minefield of baby boomer finances vs millennial finances is one of the big issues of the moment. 

So young people support the plan, right?

Reaction has been mixed.

Twenty-two-year-old Sophie Cleworth from Leigh told the BBC the money would help her "sleep easier at night". Having worked from the age of 16 and rented from 18, she said she wanted to pay off debts and start saving for a house. She earns just £7.38 an hour but is £5,000 in debt.

Meanwhile James Beattie, 20, from Bishops Stortford, who lives with his parents and works for a financial advice firm, said he would invest the money.

The Guardian's Imam Amrani said: "It's going to take a lot more than a handout to fix the structural inequalities that prevent many young people from being able to do adult things. One lump sum alone won't enable the big changes that are currently out of reach, such as putting deposits down on properties, being able to afford having children or having a quality of life that's anything like that of our parents."

And the Guardian's Gaby Hinsliff claimed "a £10,000 handout is a short-sighted solution to millennial misery". 

Could it really happen?

According to Gaby, no. "The snag, unfortunately, is that it almost certainly isn't going to happen. The political odds are stacked against such radical ways of easing the tension between baby boomers and struggling millennials". 

But on a more positive note, she said: "...we should see this as a starting point for debate about intergenerational fairness". 

We agree. The political conversations are shifting, and at last young people's voices are being heard. 

And although Kate Beioley, a reporter on FT Money who writes for the FT's Millennial Money column, pointed out FT readers "likely to be at the older and wealthier end of the spectrum" were "not impressed" at the controversial proposal, she did have another solution.

In her piece, Taking the fear out of investing, she said: "You might not have £10,000 to play with, but small amounts quickly add up... If millennials continue to see investing as something their parents do, they risk missing out on a vital part of financial security." 

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