Government accused of prioritising pensioners over children
A gulf between government spending on pensioners and children has widened by 170pc in the past two decades, new research suggests.
Last year, public spending per pensioner was £12,600 higher than it was per child, according to a report by think tank the Intergenerational Foundation.
It reveals spending on pensioners has increased by more than half in the past two decades, while the amount of taxpayer cash devoted to children has lagged.
Between 2004 and 2024, spending on retirees went up by 55pc in real terms, while children saw an increase of just 20pc during the same period, the report said.
Analysis showed taxpayers spent £31,000 per pensioner last year compared with £18,000 per child, while working-age adults cost £14,000.
It comes after Rachel Reeves reversed her decision to strip most pensioners of the £200 winter fuel payment following a months-long public outcry.
Liz Emerson, chief executive of the International Foundation, said government policy is overly favourable to pensioners because they are a key voting constituency.
She said: 'Welcome, though rapid, ageing has expanded the welfare state for the old while support has been largely withdrawn from the young. Add the power of the grey vote, and it is all too tempting for governments to respond to older generations' wants, irrespective of their actual need.'
She added this increasingly contrasted with societal difficulties faced by younger people.
'Younger generations face a polycrisis of low government investment, high housing costs, low welfare support, and high taxation.
'The fact that birth rates are falling may well indicate that younger generations do not believe they can provide the economic stability needed to bring up a family.'
The research divided government spending on public services like the NHS, state pension, education and social care by the number of children, working-age adults and pensioners in the country.
Britain's birthrate recently fell to a record low. The official fertility rate for England and Wales is 1.44 births per woman, significantly less than the 2.1 required to maintain population size.
Figures published at the end of last year showed that the number of children born to British mothers had fallen by a quarter in 15 years. It suggests many more women are putting off having children, amid rising cost of living.
The increase in state spending on pensioners has been partly driven by the pensions triple lock, which links state pension payments to inflation, wage growth or 2.5pc depending on whatever is highest.
Between 2011 and 2025, the state pension for those who reached retirement age before 2016 rose from £102.15 to £169.50 per week, a 66pc increase. Those who hit retirement age after 2016 saw weekly payments go up from £155.65 to £221.20.
The report concluded that the triple lock was not 'intergenerationally fair' amid a growing ageing population, referencing Office for Budget Responsibility (OBR) projections that government spending on the state pension will increase from around 4.9pc of GDP last year to 7.9pc by 2074.
It added that pension poverty had declined significantly in recent decades, from 28pc in 1995 to 16pc in 2023. Meanwhile, child poverty has remained consistently high with only a marginal decrease from 32pc to 30pc during the same period.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Recruiter Hays warns global slump in hirings will halve its profits
A slump in hiring activity at businesses around the world means profits will more than halve at Hays, the global recruitment company has warned, sending its shares down more than 10%. Demand for new permanent staff has fallen sharply, reflecting 'low levels of client and candidate confidence as a result of macroeconomic uncertainty', Hays told investors in an unscheduled update. The recruiter, which finds workers across the world for corporations such as Airbus and Sony, now expects its pre-exceptional operating profit to be about £45m for its current financial year, compared with City expectations of £56.4m. Last year Hays reported a profit of £105.1m. Analysts at the broker RBC Capital Markets said in a note: 'This is not wholly unsurprising given the enhanced macro-political uncertainty, and the fact that new job inflow is reducing … it is clear that a recovery is unlikely anytime soon.' Hays said it expected like-for-like net fees to be down 9% in the final quarter of its financial year. Fees from the permanent job market were expected to drop by 14%, with temporary and contracting work down 5%. Shares in Hays fell by as much as 20% in early trading on Thursday, sending it to the bottom of the FTSE 250 index of medium-sized companies and to its lowest level in 13 years. The shares pared back the loss over the course of the morning, trading down 11% by midday. The warning also pushed shares in the rival recruiter PageGroup, which generates just under three-quarters of its fees from permanent hiring, down by 8%. Shares in its Dutch rival Randstad also dropped by 4% in early trading. Hays said that in Germany, which made up about two-thirds of the company's operating profit in 2024, temporary hiring was also affected because of its high exposure to the car industry. The sector was already struggling, with profit warnings at BMW and Mercedes and moves to shut factories at Volkswagen, and has been hit further this year by the uncertainty around US trade tariffs. Hays said it expected net fees to drop 13% in the UK and Ireland, and by 9% in Australia and New Zealand. This month, official figures showed that more than 250,000 jobs have been lost in Britain since Rachel Reeves's autumn budget. Separate figures from the Office for National Statistics showed that the UK unemployment rate rose to 4.6% in the three months to April, up from 4.5% in the previous three-month period, to reach the highest level since July 2021.
Yahoo
2 hours ago
- Yahoo
Liverpool complete record swoop for Wirtz from Leverkusen
Florian Wirtz (right) inspired Leverkusen to a German league and cup double in 2023/24 (Roberto Pfeil) Liverpool completed the blockbuster signing of Germany forward Florian Wirtz from Bayer Leverkusen on Friday in a deal which could reportedly rise to a Premier League record fee. It was reported in England that the Premier League champions will pay an initial £100 million ($134 million) for Wirtz, comfortably surpassing their own record outlay. Advertisement A further £16 million in performance-related add-ons would make it a British record deal. However, reports in Germany suggested the fee could be even higher, starting at 130 million euros (£111 million, $149 million) with add-ons taking it to 150 million euros. One of European football's elite young stars, Wirtz has been hailed as one of the "best in the world" by former Leverkusen coach and ex-Liverpool midfielder Xabi Alonso, who is the new boss of Real Madrid. "I'm really excited to have a new adventure in front of me. This was also a big point of my thoughts: that I want to have something completely new, to go out of the Bundesliga and to join the Premier League," Wirtz told the club's website. Advertisement "In the end, we want to be successful. Last season they won the Premier League so my goal is for sure to win it again and also to go further in the Champions League. I'm really ambitious." The 22-year-old played a crucial role in Leverkusen's greatest season as they claimed a first-ever Bundesliga title and the German Cup in 2023/24 without losing a single game under Alonso. Their only defeat that season, during which Wirtz was crowned Bundesliga player of the year, came in the Europa League final to Atalanta, denying Leverkusen a memorable treble. Bayern Munich restored their grip on the German game last season, with Leverkusen a distant second, and Wirtz is joining an exodus from the BayArena. Advertisement Netherlands defender Jeremie Frimpong has already made the move from Leverkusen to Liverpool last month. After largely keeping their powder dry in the transfer market during Arne Slot's first season in charge, the Reds are splashing out to strengthen a side that romped to a record-equalling 20th English top-flight title. Bournemouth left-back Milos Kerkez is poised to make the move to Anfield in a £40 million deal. Liverpool have also been linked with Newcastle striker Alexander Isak and Crystal Palace centre-back Marc Guehi. Where Wirtz's fits into Slot's plans remains to be seen. He largely played behind a central striker at Leverkusen and has operated from a wider role for Germany. Advertisement A return of 57 goals and 65 assists in 197 games for Leverkusen is evidence that he carries a threat both as a creator and a goalscorer. Liverpool are already blessed with an abundance of forward options, with Mohamed Salah, Luis Diaz and Cody Gakpo all offering a goal threat. However, Diogo Jota, Darwin Nunez and Federico Chiesa now face even stiffer competition to get into Slot's starting line-up, raising the prospect of Liverpool selling some of that trio to free up further transfer resources. kca/smg/bsp
Yahoo
2 hours ago
- Yahoo
Florian Wirtz joins Liverpool in £116m deal from Bayer Leverkusen
Florian Wirtz Joins Liverpool in Record-Breaking £116m Deal Liverpool have made their biggest move in the transfer market to date, officially unveiling German international Florian Wirtz as their newest signing. After weeks of speculation and negotiations, the 22-year-old playmaker has completed a headline-making £116 million transfer from Bayer Leverkusen to the reigning Premier League champions. Advertisement This isn't just a signing. It's a statement. Wirtz Makes History with Record Fee Wirtz's transfer smashes Liverpool's previous record outlay and could also eclipse the British transfer record, currently held by Moises Caicedo's £115 million switch to Chelsea. The deal consists of an initial £100 million, with an additional £16 million in performance-related bonuses. Liverpool's previous record signing, Darwin Núñez, arrived from Benfica in 2022 for £85 million. But this time, the Reds went bigger, backed by ambition and a clear vision under Arne Slot, who replaced Jürgen Klopp at the helm in May 2024. Advertisement The deal was wrapped up swiftly. Wirtz landed in the UK on Thursday, passed his medical, signed his contract, and fulfilled his media duties at the AXA Training Centre in Kirkby. New Chapter for Wirtz and Liverpool Wirtz's comments make it clear that this move is about more than money. It's about growth, challenge and belief. 'I feel very happy and very proud. Finally it's done and I was waiting for a long time – finally it's done and I am really happy,' Wirtz told the club's official website. 'I'm really excited to have a new adventure in front of me. This was also a big point of my thoughts: that I want to have something completely new, to go out of the Bundesliga and to join the Premier League.' Advertisement 'I spoke also with some players who played there and they told me that it's perfect for me and every pitch is perfect, you can enjoy every game. I'm really looking forward to playing my first game.' The long-term contract ties him to Liverpool until 2030, reportedly on £200,000 a week. It's a sign of the club's faith in his ability and the role they expect him to play moving forward. Versatility and Vision on the Pitch Wirtz has spent the last five-and-a-half seasons at Bayer Leverkusen, developing into one of Europe's most promising midfielders. He made his Bundesliga debut at just 17 years old, scoring against Bayern Munich shortly after. Since then, he's gone on to become a regular starter for both club and country. Advertisement Last season, he played a vital role in Leverkusen's domestic double-winning campaign and helped guide them to the Europa League final. Even though the club couldn't repeat that success this year, Wirtz still delivered on the Champions League stage, netting six times in nine appearances. Comfortable as a central attacking midfielder, Wirtz's ability to operate on either flank or even up front will be a massive asset to Arne Slot's tactical plans. His creativity, composure and intelligence will complement Liverpool's existing core, and his relationship with Jeremie Frimpong, who also joined from Leverkusen, adds chemistry to the dressing room from day one. Photo: @LFC Advertisement Wirtz has already made 31 appearances for Germany, scoring seven goals, including a pair at Euro 2024. He's arriving at Anfield as a player ready for the highest level, with the hunger to win. 'I would like to win everything every year! First of all, we have to do our work, I have to make my work. In the end, we want to be successful,' he said. 'Last season they won the Premier League so my goal is for sure to win it again and also to go further in the Champions League. I'm really ambitious.' Liverpool's Summer Rebuild Gains Momentum Wirtz is Liverpool's third signing this summer, following the arrivals of Jeremie Frimpong and young Hungarian goalkeeper Armin Pecsi. A £40 million move for Bournemouth left-back Milos Kerkez is expected to be finalised shortly. Advertisement Wirtz's shirt number has yet to be revealed, though speculation is rife. While he wore the No. 10 shirt at Leverkusen, that number is currently held by Alexis Mac Allister. However, No. 27, a number he has worn in the past, is currently unoccupied. His first appearance could come in pre-season, with the squad reconvening in July. Fans won't have to wait long to see Liverpool's new record signing in action. Wirtz isn't just another addition to the squad. He's the symbol of a new era under Arne Slot, one where Liverpool aim to build on success and push even harder. The club have set their sights high, and in Florian Wirtz, they've landed a player who shares that vision and brings the talent to match it.
