Britain needs an Office for Inter-generational Responsibility to keep a lid on its snowballing debt, reducing the burden on younger generations, a think tank has said.
The Centre for Policy Studies has (CPS) today claimed in a new report that the current debt position of the UK is not fully appreciated due to the omission of the state pension from the Treasury’s Whole of Government Accounts. At £4 trillion, unfunded pension liabilities state are £221,000 per household. They are not included because they are a benefit, not an obligation.
“The UK’s debt mountain, combined with the risk of an anaemic long-term rate of economic growth, poses a serious threat to Generation Y’s future economic wellbeing,” said CPS analyst Michael Johnson.
“This, a generation already faced with unaffordable housing, college debts, fragmented careers, earnings stagnation, relatively thin occupational pension provision, and a rapidly retreating State Pension age.”