Britain’s younger generation are earning less than when the credit crisis first hit and the future looks even worse — thanks to the nation voting to leave the European Union.
In fact, according to the latest report by think tank Institute for Fiscal Studies, those aged between 22-30 have seen a drop in their income when comparing the data between 2007/2008 and 2014/2015.
In stark contrast, people aged 60 years old and over saw income jump by 11% over the period, when measured before housing costs.
And the IFS warn things are only going to get worse from Britain’s younger generation in the event of a Brexit. Here is why:
Young people are already suffering. Millennials are earning less than they did when the financial crisis first hit. Even those under the age of 60 have not seen a rise income, despite Britain's economy recovering.
Pensioners are the least likely to live in poverty. This is compared to young people who are not even parents yet. So even if they do not have a family, they are still struggling to make ends meet.
The younger generation are less likely to own a home, compared to their older peers (especially pensioners). They have to rent and, apart from a roof over their heads, they will not get a return. For example, if they owned a home they could make a profit on a sale. However, rent has rocketed over the last few years and now they spend most of their income on somewhere to live.
Since young people spend so much on rent, the rest will have to go on unsubsidised living costs. The chart shows a significant downwards trend in income when factoring in housing costs.
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