A new generational contract: the final report of the Intergenerational Commission

Jobs and pay – progress in work

Introduce a £1 billion ‘Better Jobs Deal’ – an active labour market programme offering practical support and funding for younger workers most affected by the financial crisis to take up opportunities to move jobs, change region for work, or train to progress.

Boost pay progression via new sector deals in lower-paying sectors as part of the industrial strategy, and provide new guidance on pay review processes within businesses to improve transparency.

Improve security for self-employed, atypical and the lowest-paid workers via extended statutory rights and greater certainty around working hours.

Enhance the rights of unions to speak to employees in their workplace and encourage innovation in models of worker organising, including reduced union membership rates for the young and better use of technology.

Ensure that apprenticeships are underpinned by rigorous regulation of quality; engage with employers flexibly on T Levels to ensure that the targeted volume of work placements can be delivered; and maintain high-quality specialist technical provision that does not fit neatly within these routes.

Ensure lifelong learning options are available to lower-qualified young people who will not benefit from post-16 technical reforms but who are struggling in today’s labour market.

Boost the funding of technical education provision and underpin the ‘Better Jobs Deal’ by cancelling 1p of the corporation tax cut planned for 2020.

Houses – renovating the market

Introduce indeterminate tenancies as the sole form of private rental contract available in England and Wales, following Scotland’s lead.

Introduce light-touch rent stabilisation that limits rent rises to CPI inflation for set three-year periods.

Establish a housing tribunal system which has powers to adjudicate on possession applications and challenges to rent rises.

Bring England into line with the rest of the UK by requiring landlords to register with their local authority.

Revisit housing benefit rules to improve support for younger families on low-to-middle incomes.

Limit future Help to Buy equity loans to those with an annual household income of less than £60,000 a year.

Replace council tax with a progressive property tax – including a tax-free allowance and multiple tax bands – that is related to up-to-date values.

Halve stamp duty so it supports property purchases by first-time buyers and movers and retain a higher tax rate on the purchase of additional properties.

Give city and city-region mayors the authority to limit residential property purchases in housing hot- spots to those resident in the UK.

Introduce a time-limited cut to capital gains tax for owners of additional properties selling to first- time buyers.

Create a unit of highly skilled planners in central government to support local authorities in areas of high housing need, and with a full five-year land supply, to deliver high-quality developments.

Homes England should support five local authorities that are prepared to pilot community land auctions by 2020.

Support the development of the build-to-rent sector by exempting from the stamp duty surcharge on additional properties any institutional investors that either construct build-to-rent properties or buy them within five years of construction.

Reform the viability process to ensure that builders deliver on their up front affordable homes commitments except in exceptional circumstances.

Allow local authorities to raise additional money to build new homes via a property tax building precept and new borrowing flexibilities.

Maintain the value of the new State Pension relative to earnings at a slightly higher level than the current position, funded by freezing ‘protected payments’

To maintain fairness between generations, continue to link the State Pension age to longevity, aiming to provide a broadly consistent share of adult life in retirement on average to each cohort.

Develop a system that places requirements on firms and individuals contracting self-employed people to make contributions to their pensions, and provide default routes via which the self- employed can save into pensions.

Lower the auto-enrolment threshold to the equivalent of working 15 hours per week on the National Living Wage – currently just over £6,000 a year.

Narrow the gap between minimum employee and employer auto-enrolment pension contribution over time.

Support further progress on occupational pension saving among low- and middle-earners during a period of rising minimum pension contributions by providing a flat rate of income tax relief; and exempting employee pension contributions from employee National Insurance, funded by capping tax-relieved lump sums drawn at retirement to £40,000.

Promote larger pensions schemes better able to share risk among savers, while laying the path for long-term development of ‘collective defined contribution’ schemes.

Reform pension freedoms by introducing a default product providing a guaranteed income in later life, and stimulate the market in retirement income products.

The state – delivering for all generations

Use £2.3 billion raised from a new progressive property tax to address gaps in public social care funding. Alongside this, introduce user charges on assets so wealthier individuals contribute towards their social care costs in England. However, set the asset floors and cost caps such that no more than a quarter of assets can be depleted.

As one element of a new ‘NHS levy’, charge employee and self-employed National Insurance contributions on the earnings of workers over the State Pension age, raising £0.9 billion in 2020.

As the second element of a new ‘NHS levy’, place a charge that mirrors employee National Insurance contributions on private occupational pension income, but initially at half the main rate and with a higher starting threshold.

Lift the benefits freeze a year early, uprating working-age benefits in line with inflation in April 2019, at a cost of £1.7 billion.

Maintain the commitment to increase public investment in infrastructure while sustainably reducing debt over the medium term.

Abolish inheritance tax and replace it with a lifetime receipts tax with lower rates and fewer exemptions. This should be levied on recipients, with a tax-free allowance to encourage broadly shared inheritances.

Introduce a ‘citizen’s inheritance’ – an asset endowment to all young adults who entered the labour market during the financial crisis and since – to support skills, entrepreneurship, housing and pension saving.

Engender engagement in the democratic process for each successive cohort by lowering the voting age and automatically registering young adults attending school, college and university to vote.