Nothing New Under the Sun - Half a Century of Pro Youth Policy

In Britain’s social economy, young people are increasingly neglected, especially when compared to older generations. The government has not taken sufficient action, or introduced effective policies, to address this.

Young people who are already burdened by student loans and low starting wages, also grapple with a financial landscape that disrupts their economic mobility and quality of life:

Often earning the lowest, young people are unnecessarily hindered by frozen Income Tax thresholds and a high tax burden, including Value-Added Tax (VAT) and National Insurance. High taxes can significantly reduce young people’s savings and income, making it harder for them to manage during a cost of living crisis,  to pay off their debts, and to achieve financial independence.

The housing market poses formidable challenges, with rental costs taking up a very high proportion of most early salaries. Limited tenant rights and insecurity compound the housing crisis, further underscoring the precarious situation faced by young renters. This is particularly bad for young people as it becomes harder to afford to have a family or to build wealth.

The cost of rail travel has skyrocketed in recent years. Young people, with promising job or university offers across the country, are deterred from relocating or commuting – this worsens geographic immobility and stunts overall economic growth.

In politics, the elderly appear to have disproportionate influence over their preferences. Older age groups are more likely to vote, so governments have prioritised their demands. This especially overrules younger citizens’ ability to impact decisions that shape their lives, and eventually, brings down their enthusiasm to support the UK.

For decades, the Adam Smith Institute (ASI) has been at the forefront of pushing policy recommendations that encourage the government to support working-age people, who have been disadvantaged by Government policy. Over 100 research papers from the 1990s to today are focused on issues facing young people, and often, the British labour force at large. 

In this piece, we focus on 46 key research papers, from a wide range of authors, relevant to the economic problems facing young people in Britain today, such as the housing crisis, attitudes to government and poor value-for-money education.

Proposal examples include:

Improving the financing of all education stages and childcare benefits

Reforming housing regulations, and increasing supply 

Encouraging foreign talent and taking inspiration from successful foreign policies

Boosting productivity and wages to mitigate intergenerational inequality

Reducing inefficiency in tax distribution, especially to support education and healthcare

It is evident that our call to help the next generation can only succeed with a co-operative effort from the government. As policy-makers scramble to think of new schemes for Britain, the ASI is here to gently remind them that such ideas already exist.