Could the Budget help turn Generation Z into generation debt? The Chancellor's upcoming Budget is expected to justify tax increases as a vital measure to keep the UK's national debt under control. Some argue that keeping the national debt down protects the financial interests of younger people, as they would have to foot the bill for the interest through higher taxes. Generation Z, born between 1997 and 2012, have already faced benefit cuts and rising university tuition fees. However, the triple lock on the state pension, which guarantees it rises each year by the highest of average wages, inflation, or 2.5%, is a concern. This policy benefits pensioners but may be unfair to younger generations, pushing up public spending and national debt in the long term. The UK's national debt is already high, at nearly 100% of GDP, and could rise above 250% over 50 years unless taxes are raised or spending is reduced. Some economists doubt this steep debt surge will materialize, predicting a bond market crisis and extreme borrowing costs. The ageing population is the biggest driver of rising long-term spending and national debt, with the number of people over 65 projected to rise from 13 million to 22 million. This will increase the old-age dependency ratio, pushing the state pension age higher for those born after 1990. Since 2010, government policy has favored older generations, with pensioners receiving an extra £900 a year and younger generations losing £1,400 a year. The triple lock has increased state pension spending, pushing it to nearly 8% of GDP over 45 years. Younger people may lose out on public spending decisions, and the increase in employer National Insurance contributions has slowed job hiring. The impact of the Budget on different age groups depends on tax increases and benefit protections. While younger people could benefit from the triple lock in the future, many economists argue for a rebalancing of tax and benefit treatment between older and younger generations.
