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Rachel Reeves’ budget proposal provided some small benefits for Gen Z, including some relief for first-time buyers and a minimum wage hike, but it left me with burning questions. Why is there no help for renters?
Especially when young people are clearly struggling. My “Pennies to Pounds” podcast gives listeners tips on how to spend their money wisely, and the biggest thing I’ve learned in return is that we’re all feeling the pinch. .
But everything is murkier for young Brits trying to get a foothold.
Older generations tell us, “You can save money by putting avocado on your toast and not going out,” but the reality is that the entire economic landscape is changing for us.
A 16% rise in the minimum wage for 18- to 20-year-olds to £10 an hour is clearly welcome. For those like me who still live at home, it puts a little extra in our pockets and allows more young people to start saving sooner.
The government’s promise to maintain the stamp duty exemption for first-time buyers is also great news. But then again, how much of a difference does it really make? The young people I spoke to say they still feel unable to buy a home. Although you may have some financial comfort now, it doesn’t make it easy to save enough in the first place.
I know someone who made this promise two years ago. “Okay, let’s save up £10,000 or £15,000 for a down payment.” However, the savings from the past two years did not allow them to purchase the property they had originally planned. Because prices are completely inflated. The goalposts are always moving. When you’re a Gen Zer, it’s hard to really know what you’re working toward.
And what about renters? I don’t think the people working behind the bar or serving coffee would jump for joy at a meager living wage increase of less than £1 an hour. Where is the reprieve for them?
Unfortunately, when it comes to accommodations, you can’t just stand up and say, “I’m not going to pay anymore.” I have to find the money. Such announcements often exclude large sections of the population, and despite efforts to increase housing supply, the benefits take a long time to trickle down to renters.
So what do I tell my listeners, or my 80,000 followers on social media, about what this budget has brought to the table?Let’s be honest, there’s very little consideration for those who are starting a glorious life. No, it seems like the same thing.
What caught my eye in the Budget was the creation of a new agency to improve the skills of our workforce. I realized that financial education is quite inadequate in the UK and it’s not the young people’s fault. So if the government has plans to educate Gen Z on how to value every penny, there’s no better time than now.
That is the characteristic of our generation. Although we are not necessarily optimistic about the future, we are a resilient group. It must be so.
Kia Commodore is the founder of Pennies to Pounds, a financial literacy hub for young people. Her first book How to Handle Money (Collins, £8.99) is on sale now
