Spending Review: Intergenerational Fairness and Well-being

Debate between Lord Young of Cookham and Lord Bishop of Winchester

Monday 20th May 2019 Lords Chamber

[Lord Young of Cookham]

I am not sure that that is an intergenerational issue; rather, it is about income levels between different groups in the population. Perhaps I may put this into context. This Government have legislated to raise the retirement age, which has begun to tilt the terms of trade between the older and younger generations. Over the past 10 years, interest rates have been at a record low, which has tended to disadvantage those who have retired and may have savings, while tending to help younger people with mortgages. That is not wholly reflected in the report before us. As regards exploiting young people, in December we introduced the Good Work Plan to protect agency workers and give more rights to people on short-term contracts. Moreover, I have just received some in-flight refuelling: university fees—30 years to pay off and a new threshold of £25,000.

[The Lord Bishop of Winchester]

My Lords, the Social Mobility Commission’s report has highlighted that twice the number of disadvantaged 16 to 18 year- olds are in further education than are in sixth forms. Does the Minister agree that this, combined with the 20% decrease in FE funding in real terms, is limiting opportunity and social mobility, and that the forthcoming spending review should therefore propose an increase in FE funding?

[Lord Young of Cookham]

This was another recommendation made in the report and can again be taken into account when we come to the spending review. On educating 16 to 19 year-olds, I am advised that there is a £7 billion spend on that particular age group. The right reverend Prelate has pointed to the discrepancy in funding between FE colleges and sixth forms, which I know has been an ongoing issue. I will ensure that that is taken on board in the spending review.