Ahead of Wednesday’s budget, we look at some of the measures chancellor Philip Hammond has in store for millennials.
A number of influential organisations, including the Resolution Foundation, Generation Rent and the Intergenerational Foundation have raised concerns about the unique financial challenges millennials face, from difficulty getting on the housing ladder to grappling with rising living costs. And comments by chancellor Philip Hammond demonstrate that the Government is finally listening — he has warned that millennials are at risk of being worse off than their parents.
According to sources, Hammond is set to announce some exciting new measures to help make life easier for millennials. Here’s a brief outline of what these could look like:
A massive house-building programme
Hammond is expected to announce plans to push for 300,000 new homes to be built each year, to reduce the current bottleneck in the housing market.
Expansion of the Help to Buy scheme
The overall budget could be increased by as much as £10bn in a bid to make the scheme more generous for first-time buyers.
Slashing stamp duty
This should help cash-strapped first-time buyers to find the necessary money to get on the housing ladder, but it should also make it more cost-effective for older groups to move house/downsize.
Freezing tuition fees
These are set to remain at £9,250 a year until 2019.
Increasing student loan repayment thresholds
The amount graduates must be earning before they have to start repaying their loans is likely to rise from £21k to £25k.
Special rail discounts for 16 to 30 year olds
In a nod to the rising cost of living and the stagnant wages among this group, a reduced railcard could be extended to those aged up to 30 (currently, only those aged up to 26 are eligible for a discount).
Increasing the Lifetime ISA (LISA) allowance limit
The limit on the under-40s deposit/pension hybrid savings vehicle currently stands at £4,000 a year, but could be raised to help boost younger people’s savings.
Funnelling more pension fund money into social investment
With a growing number of millennials keen to see pension funds invest in more socially responsible projects, we could see incentives aimed at getting funds to invest in funds that directly benefit society.
But which of these will actually come true? Tune in on Wednesday to find out if it is truly a “millennial budget”.