The Resolution Foundation’s call for millennials to be given a £10,000 handout from the state on their 25th birthday has to be one of the daftest ideas from wonk land in a while. The Institute of Economic Affairs tell Guido that, while the number of people turning 25 will vary each year, on average it’s around 800,000 people a year. That means the policy will cost an estimated £8 billion a year. Which is roughly equal to the total annual income tax paid by one million average earners…
The IEA’s Kate Andrews is right:
“Why should the salary of a 40 year old person, earning the minimum wage, be redistributed to top-up a 25 year old, earning double or triple the average national income? There is nothing progressive about cash transfers that are based on age. This proposal stands in opposition to the fundamental principle of welfare safety nets: that resources are redistributed to those who are most in need.”
Not to mention the fact that a £10,000 handout doesn’t pay off a 25 year-old’s tuition fees or get them on the housing ladder, let alone address any of the reasons why the Resolution Foundation thinks they need the money in the first place. Bonkers.