Taxes on pensioners and property ‘could make UK fairer for young’

RADICAL CHANGES to the tax system and housing market have been proposed to help fund healthcare and boost the prospects of young adults.

A report out today recommends a £2.3bn NHS levy, funded by applying national insurance contributions to the earnings of pensioners who work.

Council tax would be replaced with a property tax to raise a further £2.3bn for social care under proposals by the Intergenerational Commission.

The commission also recommends a £10,000 payment for 25-year-olds to help young people who are being priced out of the housing market.

It found that people are now about half as likely to own a home by the time they are 30 as the socalled “baby boom” generation, and are four times as likely to be renting privately.

The commission, which is chaired by Lord Willetts and includes TUC general secretary Frances O’Grady and CBI director-general Carolyn Fairbairn, said the relationship between generations is under “severe strain”.

Frances O’Grady said: “Today’s young workers shoulder huge risks. They’re bearing the brunt of the rise in insecure work. And many have little prospect of a decent home or a decent pension.

“To fix these problems we need an economy that works for all people, millennials and baby boomers alike.

“That means building more houses, giving everyone a decent retirement and crucially, stronger unions and rights at work.”