Stagnation Generation: Exploring Intergenerational Fairness John - - PowerPoint PPT Presentation

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Feb 07, 2024 285 likes •502 views

Stagnation Generation: Exploring Intergenerational Fairness John Hills Richard Titmuss Professor of Social Policy, LSE Georgia Gould David Willetts Labour Councillor, London Borough of Camden Chair, Resolution Foundation Nona Buckley-Irvine

SLIDE 1

Hashtag for Twitter users: #LSELitFest

Georgia Gould

Labour Councillor, London Borough of Camden

Omar Khan

Director, Runnymede Trust

John Hills

Richard Titmuss Professor of Social Policy, LSE

Stagnation Generation: Exploring Intergenerational Fairness

Hosted by the Resolution Foundation and the International Inequalities Institute

David Willetts

Chair, Resolution Foundation

Nona Buckley-Irvine

Labour Party activist and former General Secretary of LSESU

SLIDE 2

. Stagnation Generation: Exploring intergenerational fairness

LSE Literary Festival February 2017

SLIDE 3

Intergencommission.org 3

Britain has gone through baby boom and bust

Births per year (millions) by generation: UK

SLIDE 4

Generational pay progress was the 20th Century norm…

Median real weekly pay by age for each generation: UK (RPIJ-adjusted)

Intergencommission.org

SLIDE 5

Generational pay progress was the 20th Century norm…

Median real weekly pay by age for each generation: UK (RPIJ-adjusted)

Intergencommission.org

SLIDE 6

Generational pay progress was the 20th Century norm…

Median real weekly pay by age for each generation: UK (RPIJ- adjusted)

Intergencommission.org

SLIDE 7

Generational pay progress was the 20th Century norm…

Median real weekly pay by age for each generation: UK (RPIJ-adjusted)

Intergencommission.org

SLIDE 8

The British home ownership rollercoaster

Intergencommission.org 8

Home ownership rates by age for each generation: UK

SLIDE 9

The British home ownership rollercoaster

Intergencommission.org 9

Home ownership rates by age for each generation: UK

SLIDE 10

The British home ownership rollercoaster

Intergencommission.org 10

Home ownership rates by age for each generation: UK

SLIDE 11

The British home ownership rollercoaster

Intergencommission.org 11

Home ownership rates by age for each generation: UK

SLIDE 12

. Stagnation Generation: Exploring intergenerational fairness

LSE Literary Festival February 2017

SLIDE 13

The recession hit those born in the 1980s hardest

Median hourly pay by age, % change 2006-08 to 2013 (%)

Source: Labour Force Survey, full-time employees only

18.3
9.9
13.6
11.7
6.1 -4.4 -6.2 -4.3
0.1 0.3

7.2 15.1

20.9
12.7
15.5
6.3
3.1 -1.7 -0.9
6.6
2.8 -4.6

9.3

5 10 15 20 16-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70+ 16-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 MEN WOMEN

SLIDE 14

Housing costs and benefit cuts compounded this

Change in median income after housing costs by age, 2007/8-2012/3 (%)

Source: CASE/DWP analysis of HBAI dataset

7.9%
6.5%
4.6%
15.1%
19.7%
17.9%
7.3% -7.6%
10.9%
11.9% -12.7%
6.4%
1.6%

2.6%

0.2%
2.5% -2.8%
25%
20%
15%
10%
5%

0% 5%

SLIDE 15

Austerity hit the young harder than the old

Protected: Schools

Cuts:

Child Benefit
Allowances for

staying at school

Youth provision

Cuts:

Local Authority

care for elderly

Age allowance

in income tax

Higher pension

age (but longevity) Cuts:

Working age benefits

(CPI/ limits on totals/ 3 years of real cuts)

Disability benefits
Housing Benefit
Council Tax Benefit
Tax credits
Student loan

repayments Protected:

NHS
State pensions

(better for some)

Winter fuel etc.

Protected: Higher tax allowances

SLIDE 16

But it may still all come out OK in the end?

Projected lifetime receipts from health, education and social security, and taxes paid towards them by five year age cohort, 1901-2051, GB

5 10 15 20 25

1901 1906 1911 1916 1921 1926 1931 1936 1941 1946 1951 1956 Complete lifetimes 1961 (to 90) 1966 (to 85) 1971 (to 80) Incomplete lifetimes

Cumulative totals in years of GDP per capita

Tax Receipts

SLIDE 17

The big issue is now wealth differences by age?

Household wealth by age, £, 2010-12

50000 100000 150000 200000 250000 300000 350000 400000 450000 16-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Age Median

SLIDE 18

The big issue is now wealth differences by age – and within age groups?

Household wealth by age, £, 2010-12

200000 400000 600000 800000 1000000 1200000 1400000 1600000 16-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Age P90 P70 Median P30 P10

SLIDE 19

… which will make (unequal) inheritances far more important than for earlier generations

Household wealth by age, £, 2010-12

200000 400000 600000 800000 1000000 1200000 1400000 1600000 16-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Age P90 P70 Median P30 P10

SLIDE 20

. Stagnation Generation: Exploring intergenerational fairness

LSE Literary Festival February 2017

SLIDE 21

Hashtag for Twitter users: #LSELitFest

Georgia Gould

Labour Councillor, London Borough of Camden

Omar Khan

Director, Runnymede Trust

John Hills

Richard Titmuss Professor of Social Policy, LSE

Stagnation Generation: Exploring Intergenerational Fairness

Hosted by the Resolution Foundation and the International Inequalities Institute

David Willetts

Chair, Resolution Foundation

Nona Buckley-Irvine

Labour Party activist and former General Secretary of LSESU