Redistributing wealth between the generations

The cost of childcare is very much taken into account by lenders when a mortgage is applied for ( as are a range of other household expenditures)

Ditto gillybob. Many young people today leave university with debts, have zero hours contacts and either cannot afford to get on the housing ladder or struggle with eye wateringly high rents. If I can afford to help my kids, I do.

I am minded of the scene from Tale of Two Cities where the toff leans out of the carriage and throws some coins to the poor, and watches them scrabble for them. Divide and rule is certainly working on this thread! It would have made more sense if the discussion had advocated redistribution of wealth from the obscenely rich to the rest of us. And not just the pounds they own but the means of production too because you can't control what you don't own. The banks have been given 500 billion pounds of our money since 2008 and what's to show for it – underfunded schools and NHS, job insecurity, food banks, homelessness etc.

To the housing business. We have enough land (brownfield and non-starts plus empty properties) to provide 1.5 millions homes in the time it takes to build them – slightly longer for brownfield sites as they have to be 'made ready' sometimes. And the building societies have the funds to do this. But they're not building many really affordable homes. Better from their point of view to build luxury flats or sit on the land and bank it as an investment. There is a slight shortage of some materials at the moment but I personally think this would provide the incentive to try alternative construction methods – greener ones maybe?

I hope the next government will force construction of good quality homes for all immediately with penalties and possible nationalisation of their assets for any construction firms that drag their feet!

For youth – free education at all levels - like they have in Germany, Finland and those wealthy countries, Cuba and Chile! Free entry for us too.

This would be a start!

Free education is the key. If nothing else children should be given as much help as they need, not as much as the parents are in a position to provide.

margs rather a sweeping statement!
It certainly does not apply to my ACs and I'd hazard a guess that it's not applicable to all families!

Ditto gillybob. Many young people today leave university with debts, have zero hours contacts and either cannot afford to get on the housing ladder or struggle with eye wateringly high rents
I was interested to hear Martin Lewis's explanation of student loans on QT the other week.

www.moneysavingexpert.com/students/student-loans-tuition-fees-changes

Oh for heavens sake! With few admirable exceptions, this is a nasty, moaning " ooh we had it 'ard " whinging thread. Those of you who smugly report that thanks to their offspring putting their pocket money in the Building Society they were able to buy a home, need to give your heads a wobble and have a look at house prices in major cities and the South East. No amount of missed coffees 'in a paper cup', or second hand furniture will help my DD, a newly qualified teacher in the Home Counties and earning circa 23000 per annum to buy a home. No wonder there is so much misunderstanding and distrust between generations.

Those of you who smugly report that thanks to their offspring putting their pocket money in the Building Society they were able to buy a home
Was that me saying they trotted off to the BS to put in their savings and pocket money?
I didn't say they bought a house with it though; mine all spent it on travelling the world and a jolly good time they had too.

You obviously didn't read my post GillT57!

It was in response to a poster who commented that if your children are bad with money maybe you should look at how you brought them up

and I said:
All of mine were brought up the same, trotting off down to the BS to put in their savings, some birthday money etc, saving up for what they wanted.
Nowadays, one is very careful with money, another is reasonably careful and the other one is hopeless!

One thing in common, though, they all spent it seeing the world.

Pleased to hear it jalima ! Some on here are so bloody smug about their successful house buying children, and the assurances that all others could do the same if they would only be thrifty really nark me.

I agree Gill. But it’s the system that’s wrong. I feel guilty because we have managed to help our children, when I know there are many, many young adults who will not be lucky enough to have any help.

Advantage is being passed down the generations. Our grandchildren’s generation will be divided into those families with property (and all its advantages) and those with nothing. Social Inequality will be increased by this.

On a personal level, I feel bad that I cannot help my lovely, hard-working nieces who will miss out through absolutely no fault of their own.

Student loans, (although I accept Martin Lewis’s point about not paying loans back) zero hours contracts, low wages, high rents meaning it’s hard to save, exorbitant house prices, all work against young people saving deposits. Inheritance tax changes make all this even easier for the property owners’ families. And more unfair.

The saying “money goes to money” is very true and as relevant today as it has ever been. Well off parents pass on their wealth to their children who I turn pass it in to their children and so it (usually) continues. Those who have no inheritance/rich parents etc. often haven’t got a chance to get on that first step of the ladder .

You shouldn’t feel guilty mostlyharmless I agree that advantage is passed down through generations (as is disadvantage) but I would have done the same if I were in the position to.

Quote a few of us started off with nothing from our parents and made our own ‘luck’.

endre123 Goodness which old age charity was this! I know of no national charities that offer to find and organise a tradesman! Some local charities do a small handy man service but that covers tiny jobs like putting a rail up or fixing a broken loo seat! None I have come across would ever include a roof repair! You should go to your local MP about this and Citizens advice?

The cross party Resolution Foundation on Intergenerational Fairness, has recommended that over 60s who are working should continue to pay National Insurance contributions to help fund social Care. And that at age 25 people should be given £10,000 to help them onto the property ladder or start a business.
Interesting ideas.

Tax on pensioners proposed to heal inter-generational divide - www.bbc.co.uk/news/business-44029808

Yes things have changed. When I became a nurse we worked as we trained and were given a small saiary but did not end up with debts or have to pay for the tuition. My DH had a 100% mortgage as he worked for a Bank and had a subsidised mortgage and a company car. My mother helped us with school fees and had tax relief on that.
My children were able to go to uni without paying tuition fees.
However high interest rates crippled us. Surviving is the name of the game.
Yes I think credit cards are dangerous although they can be very helpful in an emergency.
I can understand young people being annoyed. I think older people should be encouraged to downsize which is what a lot of people want to do anyway. Council tax reduction for lone households should be phased out .
I think the local authorities should provide care homes again. NIC payment should be gradually moved up a year or so.
Inheritance tax should be paid on land.

I think NI should be paid for life.
Inheritance tax should be reviewed.
The amount anyone can earn before paying any tax should rise.

Whilst I wouldn't agree that every 25 year old should be handed £10,000 I would be in favour of a fund which 25 year olds could apply to - they would have to show a reason they wanted the money, help towards a deposit for a house - having proved they have saved towards the deposit themselves, a financial injection to help with a new business or for education, as long as the course is something which would be useful to society - medicine, science, engineering etc.

Many of the initiatives mentioned here appear to come from 'comfortable' retirees who have enjoyed pensionable professional employments.
Few consider the average to poor pensioner with little or no workplace pension who just about manage. What would removing the single person council tax do to these? They would apply for social assistance or live even more frugally.
To make ends meet, some fit and able older folk do work to make ends meet, further tax any earned income may make work uneconomic again meaning these folk either apply for benefits or live more frugally.
Generalisations are so dangerous.
What I find puzzling is where does the 'actual' and 'supposed' wealth that the older generation hold go to on death, does it evaporate into thin air?

I don’t agree with handing over £10,000 to every 25 year old either Oldwoman70 .

Seems ridiculous to me . Why not reduce income tax to help those with the lowest income? Why not improve/ adapt the help to buy schemes? Handing out £10,000 to someone from a rich family background is just plain ridiculous and would £10,000 really do anything much to help those at the bottom end of the financial ladder ? I doubt it .

For the younger generation we need to consider the value of university education. I think encouraging children to go to university was a ploy to keep the youth in education during the period when we had excessive youth unemployment in the 80's this done to prevent unrest. Contentious but possible. Many Uni courses do not result in well paid jobs.
It is a disgrace that we supposedly have good employment law when this most certainly is not the case when most employment for lower skilled is through agencies who require employees to be 'self employed ' negating the need for employers to pay sick pay and pensions and the agencies take a 'cut' out of the employees wage to administer the payroll. We have zero hours contracts which afford employees no security of earnings or benefits. Many cheered at the demise of unions, but look at what the young working poor have to contend with now.

We occasionslly use agency staff Joelsnan none of which have ever been taken on a self employed basis . We actually ended up keeping 2 on permanently. Holiday pay etc. is paid as it would for any permanent worker and the agency add their fee on top of the wages they DO NOT take it from the agency worker . All in all it is a very expensive way of employing someone .

Single person Council Tax rebate is not very generous anyway. The standard rate is based on two people living in the home, but it is only cut by 25% for a single person. Large households, with perhaps several earners, don’t pay more either. It’s really about time the Council Tax system was thoroughly overhauled.
An earnings based tax might be fairer perhaps?