Investing in the future

Britain is not a poor country. Indeed we are a wealthy nation. But that wealth is increasingly concentrated in the hands of the few as inequality grows within and between generations. This is having profound effects on relationships in our country, increasing tensions between people of different ages. It’s widely recognised that younger people, children and families have fared worst in austerity Britain.

A new paper from United for All Ages looks at how work and welfare could be transformed for all ages and suggests how the nation’s wealth could be better used to create a fairer and better country. This is perhaps the biggest challenge for Britain but one which many politicians shy from, as we have seen in the recent debate on debt in the USA. It’s a lot easier for politicians to focus on the next election than the next generation.

Using wealth is the key to unlocking our country’s potential and ensuring that all generations can contribute to and benefit from future success. Older people have much more they could contribute if they were encouraged; young people could do much more if they were given the chance; multi-generational families would do much more if they had the time, support and resources.

To give a flavour of what the ‘Investing in the future’ paper proposes, here are some of the recommendations to stimulate thinking for all ages:

•    Many of us want to and will be expected to work longer; that will produce huge dividends for employers and for society, including increased tax revenue. Workers over state pension age should continue to pay national insurance and the revenue raised should be earmarked for a ‘next generation’ fund to support the employment of people under the age of 25.

•    Living longer means changing families and changing patterns of work and care: people will work full-time, part-time, flexibly and for longer; people will have responsibilities for childcare and eldercare at different times in life and sometimes at the same time. We should take a life course view of care through family policy that is multi-generational and supports caring responsibilities across extended families.

•    A new national ActionAge programme led by central and local government with the third sector could harness the energy, skills and knowledge of older people in our society, working with people of all ages.

•    The vast majority of wealth and assets is held by people aged over 45 as property, investments and pensions. A review of inheritance tax, capital gains tax, corporate taxes and tax avoidance could release the resources required to implement the work and welfare recommendations fairly across all ages, redressing the intergenerational wealth imbalance.

There are many other recommendations in the paper. It aims to open up a public dialogue about wealth, work and welfare and intergenerational fairness. As many people feel the pinch in Britain, it is only fair and right that our wealth and resources are shared collectively and fairly for all ages.

Britain is at a crucial turning point. We face huge economic and social challenges which threaten the very fabric of our country. Resentment between and within generations will continue to increase if inequality and intergenerational unfairness are allowed to grow. We must take action while we can afford to; if we don’t, then imagine Britain in 2030 – a country divided as older people prosper with inherited wealth, decent pensions and housing, while younger generations face higher taxes, failing services and lower living standards.

Britain and our communities are much stronger when they are united, not divided. We must invest in the future – as our legacy for the next generations.

• The paper, Investing in the future – wealth, work and welfare, can be downloaded from the website