A bombshell report published this morning paints a grim picture for Britain’s youth, warning that a perfect storm of stagnant wages, soaring housing costs, and vanishing entry-level jobs is creating a ‘lost generation’ locked out of prosperity. Sources who have seen the document say it reads like an autopsy of a broken social contract.
The report, commissioned by the National Youth Commission and based on two years of data, confirms what many have long suspected: the gap between what young people earn and what they need to live independently has never been wider. For those aged 16 to 24, real wages have fallen by 8% since 2010, while rents have surged by over 40% in the same period. The result is a generation forced to delay marriage, homeownership, and even starting families.
One leaked statistic stands out: the proportion of 25 to 34-year-olds living with their parents has risen from 13% in 2000 to 25% today. In London, it is closer to one in three. These are not isolated cases, they are the new normal.
The report does not stop at housing. It documents a collapse in employer-funded training schemes and apprenticeships, down 30% in the last decade. Meanwhile, zero-hours contracts and gig economy jobs have filled the vacuum, offering flexibility but little security. One source, a former government economist who spoke on condition of anonymity, told me: ‘We have created a labour market that treats young people as disposable. The long-term cost in lost productivity and social cohesion is incalculable.’
Critics will argue that youth unemployment is low, but this report shows that the problem is not a lack of jobs, it is a lack of good jobs. The recovery after the pandemic has been a J-shaped one, benefiting those at the top while leaving the young clinging to the low end of the ladder.
The commission calls for urgent action: a New Deal for young people that includes a guaranteed job or training place for every under-25, a cap on rent increases for those under 30, and a levy on companies that fail to invest in training. But the stench of politics hangs over the recommendations. With a general election looming, the report has been weaponised by opposition parties, who have already demanded the government adopt its proposals.
Downing Street declined to comment on the specifics, but a Treasury insider dismissed the report as ‘alarmist’ and pointed to recent investments in skills. Yet the numbers do not lie. The resolution foundation, which contributed data, confirmed that young people today are on course to be the first generation in modern history to be worse off than their parents.
This is not a crisis that can be fixed with slogans. It will require hard choices and real resources. But if the report’s warnings are ignored, the consequences will be felt for decades. The lost generation is not a headline, it is a verdict on the choices we have made.
More to follow as this story develops.
