A top research board has today announced that taxes must increase again if the country is to be able to afford to pay for the pensions, healthcare and benefits of the baby boomers generation.
The National Institute of Economic and Social Research (NIESR) revealed in research that each child born now would have to pay an extra £70,000 throughout their lifetime than they would receive back in benefits and services from their government.
They claim that those aged 65 would have been given back £220,000 more than they put in, representing a huge difference.
The report predicts that taxes would have to increase by £82 billion a year if the country is to fill the gap created by the 47-64 boomers age group.
“There is a past history of pay-as you-go benefits, which has allowed earlier generations to receive more from the state than they have contributed over their lifetimes, and it is inevitable that there is now a net contribution which has to be paid,” the report said.
The report added that those over 50 had the vast majority of the wealth now, and that younger workers would be left paying higher mortgages that those born in the boomer gap.
The NIESR predicted that it would take a 6% of GDP rise in taxes to level out the playing field.