Redistributing wealth between the generations

I thinks NI payments should just be absorbed into general taxation. Just increase the basic rate of taxation by 12% and scrap the separate system. That way everyone, except the lowest paid, would contribute to what is now called NI on all income from all sources for life.

Agree totally, SueDonim. Divide and rule!

See my post here - around page 5!

jenpax , some Age UK branches have a list of approved tradesmen. but none, that I know of, would actually organise and sort a problem out for an individual

I admit that I haven't read all of the thread but what strikes me is that this 'intergenerational war' has been concocted to avoid questions being asked about the general inequality in society, with those at the top having many, many time more than those at the bottom. Inequality runs right through society, from the newborn to the aged.

Some of the truly rich hide away their wealth, avoid taxes and fail to contribute to society while the 'little people' fight over the crumbs that have fallen from the captain's table. We should not be taken in by this attempt to pit generation against generation.

Imo I think there are so many aspects of the various revenue raising streams that are unfair and not fit for purpose.Council tax should be related in some way to ability to pay ( not just council tax benefit). IHT is really a voluntary tax for those who can afford to set up a trust or some other scheme. NIC system favours the higher paid because of the cap and is also a tax on working people which those living on investment income avoid. If we want to raise more money for health and social care then income tax on all sources of income should be raised and there needs to be better enforcement. I accept that there is no logical reason why I should not pay NI on my earnings just because of my age but I don’t think it’s fair that I should pay them when my wealthy friends don’t have to on their substsncusl investment incomes. At least I work for my money. Also NICs impact on employers as well.

gillybob I have been on both sides of the Agency system and agree it can be expensive for the employer, I wouldn't touch them with a barge pole unless there was absolutely no other route.
However after assisting my 17 year old great nephew wrangle with agency work requiring him to be self employed. I am outraged at what these agencies get away with and what dire employment status those who have no alternative but to accept agency work.
These are issues that we should concentrate on give kids a decent full time pensionable job,

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?

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 .

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.

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 .

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?

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.

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

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.

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

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.

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?

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

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.

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 .

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.

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.

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.

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.

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.