• Latest
  • Trending
  • All

Could the Budget help turn Generation Z into generation debt?

November 27, 2025

Temporary disposable barbecue ban over wildfire risk

August 15, 2026

Why tech bosses keep sharing their manifestos about AI

August 15, 2026

European Athletics Championships 2026: Keely Hodgkinson takes 800m silver behind Swiss rival Audrey Werro

August 15, 2026

Electric vehicle sales targets could be cut after pressure from car makers

August 14, 2026

Business Daily – Taking Stock: The cost of heatwaves

August 14, 2026

Major oil slick washes up on Iran coast after Hormuz ship strike

August 14, 2026

Rare breeding bat found roosting near South Yorkshire reservoir

August 14, 2026

Killer who will not say where wife's body is to stay in prison

August 14, 2026

Amy Hunt: Can getting glammed up really improve your performance?

August 14, 2026

Arrests and road closed over suspected abduction in East Lothian

August 14, 2026

Tân mawr ger Llanymddyfri yn gorfodi nifer o bobl i adael eu tai

August 14, 2026

Ardoyne: Police defend response to north Belfast incidents

August 14, 2026
News
  • Login
  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Saturday, August 15, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Australia v Bangladesh: Steve Smith benefits from reprieve but tourists dominate day one of first Test

    Builders unearth €9m gold loot sealed in walls of Belgian property

    Chad’s Succès Masra: Former prime minister given state pardon

    Japan: Record rain in Chiba kills eight as thousands stranded at Narita Airport

    Engine parts smashed Ryanair window that man’s head was sucked out of, report says

    Stolen Matisse artworks recovered by police in Brazil

    Israeli settlers besieging Palestinian families in West Bank village

    Concern grows over conditions on USS Abraham Lincoln

    Australian army whistleblower released on parole after more than two years in jail

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Temporary disposable barbecue ban over wildfire risk

    European Athletics Championships 2026: Keely Hodgkinson takes 800m silver behind Swiss rival Audrey Werro

    Killer who will not say where wife's body is to stay in prison

    Arrests and road closed over suspected abduction in East Lothian

    Tân mawr ger Llanymddyfri yn gorfodi nifer o bobl i adael eu tai

    Ardoyne: Police defend response to north Belfast incidents

    'Welcome to one of the most bizarre by-elections in recent history'

    European Athletics Championships 2026: Amy Hunt wins 200m gold as Dina Asher-Smith claims bronze

    'Releasing my son's killer early would be a slap in the face'

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Electric vehicle sales targets could be cut after pressure from car makers

    Business Daily – Taking Stock: The cost of heatwaves

    US says dozens of countries helped China dodge Trump’s tariffs

    RBSI announces around 50 job cuts in Jersey

    UK economy grows but experts warn of challenging months ahead

    Twitch users can now block Amazon from using their content to train AI

    Burnham warned Iran war could hit UK growth next year

    First wave of ‘pounds for pylons’ energy discount sites revealed

    Trump Media reports $238m loss as crypto falls

  • Tech
  • Entertainment & Arts

    Meghan hits red carpet at Power of Women in Hollywood

    Margot Robbie unable to speak at Saltburn premiere

    Barbra Streisand: Siri can now pronounce my name

    Wes Anderson’s The Grand Budapest Hotel inspires cinema’s look

    Taylor Swift/ Travis Kelce romance reaches White House

    The Killers booed at Georgia concert after inviting Russian fan on stage

    Watch: Memorable moments from Parkinson's star-studded show

    Tom Jones: Neighbour surprised to find singer in flat below

    Black Country Folk Festival showcases local musicians

    Watch: Australians set new world record with Tina Turner dance

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Reality Check

Could the Budget help turn Generation Z into generation debt?

November 27, 2025
in Reality Check
7 min read
248 5
0
493
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Ben ChuPolicy and analysis correspondent, BBC Verify

Getty Images A young woman in a supermarketGetty Images

Chancellor Rachel Reeves’ upcoming Budget is expected to justify tax increases as a vital measure to keep the UK’s national debt under control.

Some have argued keeping the national debt down protects the financial interests of younger people. That’s because if the country’s debt went up drastically, it is younger people who would have to foot the bill to pay for the interest on it. And it would be taken directly from their payslips through higher taxes.

Generation Z, or those born between 1997 and 2012, have been hit in the pocket over the past 15 years by benefit cuts, as well as being affected by the aftermath of the dramatic increase in university tuition fees in England from a cap of £3,375 to £9,000 in 2012 (with subsequent changes in Wales).

Meanwhile, the homeownership rate of those born since the 1990s is well below that of earlier generations, due to the relative difficulty they have faced in getting on the housing ladder.

However, most politicians, including the chancellor, are also committing to keep paying for the triple lock on the state pension, which guarantees it rises each year by the highest of average wages, inflation or 2.5%.

There’s growing concern that current tax and spending policies help pensioners but are unfair on younger generations, and that the triple lock in particular will push up public spending and the national debt in the long term.

So will this budget really help younger generations? Or could it help saddle them with higher taxes and more debt?

BBC Verify has been looking at the numbers.

Why is the national debt a concern?

The UK’s national debt currently stands at just under 100% of UK GDP, which is the value of all the goods and services produced by the economy in a year.

The government’s official forecaster, the Office for Budget Responsibility (OBR), has warned it could rise above 250% over the next 50 years unless taxes are raised or public spending is reduced.

Some economists doubt such a steep and sustained debt surge would actually materialise, arguing it would likely trigger a bond market crisis long before then and see UK government borrowing costs pushed to extreme levels by private investors, which would instead force a change in tax policy or spending.

Yet the OBR says the purpose of its long-term projection is to highlight that the UK’s public finances are currently on what it calls an “unsustainable” trajectory.

The biggest driver of rising long-term spending, and therefore the increase in the national debt according to the OBR, is our ageing population, which means the government needs to spend more money on the NHS, social care and the state pension each year.

The number of people over 65 is projected to rise from 13 million to 22 million over the next five decades. That would push up the old age dependency ratio – the proportion of older people over the age of 65 relative to people aged 16 to 64 – from around 30% today to almost 50% by 2070.

Today the state pension age is 66, but for people born after 1990 it’s likely to be pushed higher to keep people working longer and reduce the old-age dependancy ratio.

Even so, the national debt would still likely increase significantly from today’s level because of these old age spending pressures.

Do younger people lose out on public spending decisions?

Since 2010, government policy on benefits has tended to help older generations and to take money away from younger generations.

Over the past 15 years, the over 65s have received on average an extra £900 a year, while those under 65 have lost an average of £1,400 a year, according to calculations by the Resolution Foundation think tank.

The driving force behind this has been the value of the state pension increasing faster than average wages since 2010 because of the triple lock, alongside government cuts to working-age benefits, including housing benefits, unemployment benefits and universal credit.

The OBR projects that the triple lock will continue to push up state pension spending further in the coming decades.

If the state pension were only tied to increases in average wages then its share of GDP would only rise from 5% today to 6% in 2070, according to the OBR. But instead it projects the cost of the triple lock will push government spending on the state pension to nearly 8% over the next 45 years.

That might only be two extra percentage points, but it equates to around £60bn in today’s money, and it would be younger working age people who would have to pay for it through their taxes.

Which generations will benefit and lose from the Budget?

The impact on different age groups will depend on which taxes increase and which benefits are protected.

For instance, if high value homes were to face extra taxes, it would affect older people more as they tend to have greater property wealth.

If you look at earnings, pensioners still have to pay income tax but are no longer subject to employee National Insurance.

And younger people are deemed to have been hit harder by the increase in employer National Insurance contributions Rachel Reeves introduced in her first budget in October 2024, which appears to have slowed down job hiring rates.

All taxpayers have a shared interest in seeing the debt burden brought under control as a share of the size of the economy. Though one of the reasons the government borrows is to pay for investment in infrastructure such as roads and housing. Some economists warn that if ministers reduced that kind of spending and borrowing out of concern over the national debt it could prove counterproductive and ultimately damaging to younger people.

As for the triple lock, younger people could benefit from its continuation when they eventually retire themselves – and polling shows that 18-49 year olds are broadly in favour of keeping the policy.

Nevertheless, in the context of the past 15 years, many economists argue younger people also have an interest in seeing a rebalancing of the treatment of older and younger generations through the tax and benefit system.

Clarification 24 November: The reference to university tuition fees has been changed to make clear that the large increase happened in 2012 and to make clear the extent of this within the UK.



Source link

Tags: budgetdebtgenerationturn

Related Posts

Major oil slick washes up on Iran coast after Hormuz ship strike

August 14, 2026
0

Iran did not acknowledge being responsible, but shipping analysts have said it was likely to have been behind the...

Image of supreme leader shared by Iranian media is AI-generated

August 13, 2026
0

Mojtaba Khamenei hasn’t been seen in public since March - but AI-generated images of him continue to spread online....

White House makes misleading claim on US childhood vaccines

August 12, 2026
0

US President Donald Trump says 'little children' in the US get 72 jabs, BBC Verify explains why that claim...

  • Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

    677 shares
    Share 271 Tweet 169
  • Belgian footballer arrested in cocaine investigation

    533 shares
    Share 213 Tweet 133
  • Next to raise prices to help pay for rising wage costs

    532 shares
    Share 213 Tweet 133
  • South Wales Police officers injured, one arrested

    525 shares
    Share 210 Tweet 131
  • Charities to get £15m fund to save surplus farm food

    516 shares
    Share 206 Tweet 129
  • Trending
  • Comments
  • Latest

Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

January 16, 2025

Belgian footballer arrested in cocaine investigation

January 27, 2025

Next to raise prices to help pay for rising wage costs

January 7, 2025

World Cup 2022: TikTok brings football fever to millions of fans

0

UK economy will get worse before it gets better, warns chancellor

0

One of Central America’s most active volcanoes erupts again

0

Temporary disposable barbecue ban over wildfire risk

August 15, 2026

Why tech bosses keep sharing their manifestos about AI

August 15, 2026

European Athletics Championships 2026: Keely Hodgkinson takes 800m silver behind Swiss rival Audrey Werro

August 15, 2026

Categories

Politics

Temporary disposable barbecue ban over wildfire risk

August 15, 2026
0

"We have a fire and rescue service across the country that isn't properly set up to deal with these...

Read more

Why tech bosses keep sharing their manifestos about AI

August 15, 2026
News

© 2023 GODJ - NEWS CORP - news.godj.com.

Explore NEWS.GODJ.COM

  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

© 2023 GODJ - NEWS CORP - news.godj.com.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.