Tackling Intergenerational Unfairness (Select Committee Report)

Baroness Ritchie of Downpatrick Excerpts

Monday 25th January 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I take this opportunity to congratulate the noble Lord, Lord Price, and his special scrutiny committee on this report and on setting the context for this very important and appropriate debate. It raises issues around generational policy matters which have been brought into sharper focus as a result of Covid-19 and its associated impacts on health, the economy, education and recreation, and how they differ between and within generations. I think the noble Lord, Lord Price, referred to the report as being particularly prescient and I would have to agree with him.

I note that the committee published its report in April 2019, and that it alleged that

“the action and inaction of successive governments”

had risked undermining fairness between generations and called for improvements in six areas to tackle this: accounting for policies and data, housing, education, work, communities, and tax and benefits. In setting up the report, the Liaison Committee stated in March 2018 that concern for intergenerational fairness was growing

“as the millennial generation appears to be worse off than the baby boomer generation were at a similar age”.

That is probably now even more acute with the added layer of Covid.

The report referred to other factors which had exacerbated the situation for generations: an ageing population, the global financial crisis and successive government policies that have failed to consider generational issues. It also referred to the inability to access social and affordable housing among young people. What plans do the Government have, working with the devolved Administrations—as housing is a devolved issue—to increase the supply of affordable and social housing?

The Government tried in their response to demonstrate how they are tackling the issues but, as many have pointed out, their scorecard would state that they should have performed better, with a more caring, empathetic response focusing on the needs of the young, working families and the older generation. A new direction is required in reforming taxation and welfare—two issues that were mentioned in last Thursday’s debate—so as to focus on generational issues, particularly the needs of the younger generation.

This report, and the Government’s response to it, have now been overtaken by Covid and its consequences for a wide spectrum of society and environment. In fact, it has accelerated the fairness issue between the generations and accentuated the divisions in our communities. That is particularly true for young people, as they are now forced into online learning and tuition whether at school, college of further education or university. There is also uncertainty over trade apprenticeships and the potential for jobs in an economy facing a double-dip recession. Those who are or were in jobs in the hospitality sector are facing, in some instances, the fact that furloughing is no longer available; they are now out of work, with no resources, and do not know whether they will have jobs to go back to. With lockdowns, there is little opportunity for social interaction, although they are needed to press down the level of infection. All this can bring about mental ill-health issues.

For all generations, there is a need to look at reforming the taxation and welfare systems to focus on need. Accessibility to the benefits system is also needed, as is fairness. The Government’s policy, emerging from the Conservative Party manifesto, was to focus on a low-tax economy that benefits the rich but does little to help those in receipt of low incomes. There have been several reports since this one from the special Select Committee, including from the Resolution Foundation, the Intergenerational Foundation and the Institute for Fiscal Studies, which focused on the disproportionate impact on younger people.

What action will the Government therefore take across departments and agencies to address intra- and intergenerational fairness? The issue has been apparent for many years, but the unfairness has now been accentuated by Covid and its consequences. In so doing, will they implement policy changes in welfare, housing, education, taxation and health systems that focus on the values and principles of social justice and equity? What will the Government do to reform welfare and taxation? Both are crying out for reform as we try to create that better, egalitarian society.