A Labour minister has expressed stark concerns regarding the challenges faced by young adults in the UK, particularly related to the escalating costs of housing and raising children. In a social media post on X, Josh Simons, the parliamentary secretary for the Cabinet Office, described life for young adults eager to have children but struggling financially as “s**t.” His remarks were prompted by a news article in The Times highlighting that the average cost of raising a child in the UK totals nearly £250,000 over the first 18 years.
Simons emphasized that well-educated individuals aged 20 to 40 often find it “IMPOSSIBLE” to simultaneously save for a home and afford raising children. He further referenced research from the investment platform MoneyFarm, which estimated that parents spend approximately £65,016 on their children between the ages of 15 and 18. This financial strain, he argued, contributes to a worrying decline in birth rates, which he described as a “BIG problem” necessitating urgent attention.
Record Low Fertility Rates
According to the Office for National Statistics, the fertility rate in the UK fell to a record low in 2024, with women expected to have an average of 1.41 children, down from 1.42 in 2023. The most significant declines have been observed among women aged 25 to 29, reflecting broader economic pressures and lifestyle choices impacting family planning.
Simons, who holds a PhD and serves as an MP, shared his personal experiences with financial difficulties. He noted that the current economic climate makes it increasingly challenging for young adults to consider starting families. The implications of these trends are substantial, as they may affect not only individual aspirations but also long-term demographic patterns in the UK.
Impact of Government Decisions on Young Professionals
The challenges facing young people have been compounded by recent decisions made by the government. Analysis from City AM indicates that budgetary changes spearheaded by Rachel Reeves, another Labour figure, are expected to squeeze young professionals’ incomes over the next five years. For instance, a graduate earning 50 percent above the median wage at the age of 30 in 2020 would pay significantly less in taxes and student loan repayments than their peers who graduate in 2030 under new tax thresholds.
The study highlights the detrimental effects of a freeze on income tax thresholds until 2031, which will push millions of Britons into higher tax brackets. According to separate data compiled by The Economist, individuals with master’s degrees earning £30,000 annually face a marginal tax rate of 43 percent, while those over 66 in similar jobs pay only 20 percent. This disparity raises concerns about the financial viability of higher education and its return on investment for young professionals.
Additionally, competition in the job market is intensifying, with recent findings from job platforms like Indeed revealing a faster-than-average decline in graduate hiring compared to the overall UK economy. Economists attribute this trend to the Labour government’s policies, including an increase in the national living wage and heightened employer national insurance contributions, which they label as an employment tax.
The cumulative effect of these issues paints a challenging picture for young adults in the UK. As financial pressures mount, the conversation around housing affordability, the costs of raising children, and career prospects becomes increasingly critical.
