Spending Review: Intergenerational Fairness and Well-being

Lord Davies of Oldham Excerpts

Monday 20th May 2019 Lords Chamber

[Lord Young of Cookham]

Steps were taken last year to raise the threshold at which debt starts to be repaid. However, as I said in my original reply, one of the report’s recommendations is to take this issue into account in the spending review. However, we have seen a huge reduction in unemployment among young people, with the rate among 16 to 24 year-olds having halved since 2010, which is a good record.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister is being somewhat complacent in his answers to the third Question of the day. He must be aware that a large number of young people feel outrage because the scales are tilted against them not just on university fees but on the kind of jobs that he has just identified, which are often in the gig economy, where young people are exploited rather than rewarded. Does he appreciate that a great deal of the anger in our communities is being generated by this Government having presided over an economy in which, in the past decade, ordinary wage earners have had absolutely minuscule increases while the bosses of the FTSE industries have been coining fortunes?

[Lord Young of Cookham]

I am not sure that that is an intergenerational issue; rather, it is about income levels between different groups in the population. Perhaps I may put this into context. This Government have legislated to raise the retirement age, which has begun to tilt the terms of trade between the older and younger generations. Over the past 10 years, interest rates have been at a record low, which has tended to disadvantage those who have retired and may have savings, while tending to help younger people with mortgages. That is not wholly reflected in the report before us. As regards exploiting young people, in December we introduced the Good Work Plan to protect agency workers and give more rights to people on short-term contracts. Moreover, I have just received some in-flight refuelling: university fees—30 years to pay off and a new threshold of £25,000.