A leading political think tank has issued a stark warning: young Britons are increasingly disillusioned with government policies as they face rising barriers to homeownership and starting families. Meanwhile, their tax contributions predominantly support benefits for older generations, deepening frustrations among youth.
Onward, a centre-right think tank known for advocating “pragmatic, evidence-led compassionate conservatism,” highlights a disturbing shift in UK policy that disproportionately favors the elderly. Former Conservative Communities Secretary Sir Simon Clarke, head of Onward, calls this a broken social contract. He says, “Young people face a terrible deal with sky-high housing and childcare costs wrecking their ability to find a home and start a family.”
Clarke emphasizes the broader implications: “This is not just a matter of fairness; it affects how we will fund public services and state pensions in the future. Without enough children, the state risks becoming a kind of giant Ponzi scheme.”
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The report paints a challenging picture even for fully employed young adults. Affording a first home, raising children, and saving for retirement remain increasingly difficult. The average starting deposit for a first home has soared from £18,167 in 2020 to over £61,000 today.
Alarmingly, by 2022, more than a quarter of individuals aged 20-34 were still living with their parents. Onward warns that while immigration is used as a short-term fix for declining birth rates and shrinking working-age populations, it does not address the fundamental demographic challenges.
Phoebe Arslanagić-Little from Onward adds, “Our social contract is under severe strain, with today’s young people funding state services and entitlements they may never benefit from. A country that works only for the retired will not be sustainable, and we urgently need policies that tackle demographic issues and create a fairer system for future generations.”
The growing disconnect between young people and the political system raises urgent questions about the sustainability of current policies and the long-term social fabric of the UK.