Every 25 year old, born in UK, will be given a £10,000 Government Grand to help solve yawning economic gap between the generations.
The report from the Think Thank’s International Commission, backed by business lobby group the CBI and trade union group TUC, admonish that today’s thirty-somethings are the first generation to see their incomes dropping compared to when their parents were at that age.
It shows that there is a record amount of people renting and are unable to get to the housing ladder, with many trapped in zero hour jobs for that reason the radical action is necessary to make the balance.
According to a report by the IPPR Commission on Economy Justice, the kind of fund that can give everyone a stake in the economy and can also help young people invest in their future such as buying property, starting their own business or investing in their education.
It is to be funded by a revamped, tougher version of inheritance tax, and is one of a number of policies proposed by the Resolution Foundation at the end of a two year study into inter-generational inequality.
The fund will need to be big enough to pay £10,000 to all 25 years old from 2030.
The panel was chaired by David Willetts, the former Conservative Universities Minister, and included the TUC secretary general, Frances O’Grady, and the CBI Director General, Carolyn Fairbairn.
The report states: “The younger generation are bearing more risks and holding fewer assets than their predecessors.”
“We need to redress that imbalance if we are to maintain the promise of an asset-owning democracy.”