Rachel Reeves’s Budget has delivered a smattering of goodies for Generation Z, including some relief for first-time buyers and a boost to the minimum wage, but it leaves me with a burning question: why is there no help for renters?
Especially when young people are clearly struggling; my Pennies to Pounds podcast dishes tips to listeners on the best ways to handle their money, and the biggest thing I’ve learned in return is we are all feeling the pinch.
But everything is bleaker for young Britons trying to get a foothold.
Older generations tell us, “Just cut out avocado on toast, stop going out as much, and you can save money”, when, in reality, the whole economic landscape has changed for us.
The 16 per cent increase in the minimum wage for 18 to 20-year-olds, to £10 an hour, is obviously welcome. For those still living at home, like I am, it will put a bit extra in our pockets and enable more young people to start saving sooner.
The government’s promise to keep the stamp-duty exemption for first-time buyers is also great news. But again, how much difference will it really make? The young people I speak to say it still feels impossible to buy a home. Even though we now have some financial relief, it won’t make it easier to save enough in the first place.
I know of people who promised themselves two years ago: “Right – I’m going to save £10,000 or £15,000 for a deposit.” But the last two years of saving couldn’t get them the property that they had initially planned for, because it’s totally shot up in price. The goalposts are always moving. When you’re Gen Z, it’s hard to really know what you’re working towards.
And what about renters? I doubt those working behind a bar or serving coffee are going to be jumping for joy at the negligible increase of less than a pound an hour in the living wage. Where’s the reprieve for them?
Accommodation is something that, unfortunately, you can’t just up and leave and say, right, I’m just not going not pay anymore. We have to find the money. A massive subsection of people are often left out in announcements like this, and while there were initiatives to increase the supply of homes, it takes a long time for the benefits to trickle through to renters.
So, what would I tell my listeners – or my 80,000 followers on social media – about what the Budget has served up? It seems like more of the same, to be honest, with little thought given to those who are trying to begin their brilliant lives.
One thing in the Budget that caught my eye was the creation of a new agency to upskill our workforce. I’ve come to realise that financial education is pretty poor in the UK, and it’s not the fault of young people. So, if the government plans to school Gen Z on ways to make every penny count, there’s never been a better time.
That’s what’s unique about our generation: while we’re not always optimistic about the future, we’re a resilient bunch. We have to be.
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 out now
