Download 'Too Hot', an exclusive Specials track from iTunes
TONY BLAIR has betrayed the “iPod” generation – young people who are insecure, pressured, overtaxed and debt-ridden – according to a report today from the think tank Reform, writes David Smith.
It says the prime minister’s 10 years in power have left young people facing more uncertain future than their parents because of higher taxes and pension contributions, and the difficulties of getting on the housing ladder.
The average graduate will face an effective tax rate of 47.2% in 2012 as a result of these factors, it says, including student loans and pension contributions. The report also highlights that property prices for first-time buyers are now eight times the average earnings of those aged 22-29, up from five times in 1999.
While rising house prices have exposed sharp inequalities between the generations, the report says that over the long term pensions will highlight the divide. “Older people are set to gain enormously from a rising state pension linked to earnings, but will face little of the cost of financing it,” it says. “In contrast, young people must fund the increase while also facing automatic contributions of 3% from their own salaries.”
“I am 23 years old and graduated from university a year ago, and am £16,000 in debt,” said Tom Russell, a landscape gardener. “I can see no real way out of my mother’s home unless I wanted to be stuck in somebody else’s rented house.”

Sam Coates's blog about Westminster, politics and spin
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
I agree with Vishal.
People who strive to achieve through their own hard work and determination are rewarded by high levels of tax, the burden of debt and the inability to step onto the housing ladder.
Those who choose another route of maintaining the status-quo, living in social housing financed by the hard working MINORITY - face none of these challenges.
Those who come from humble benginings but strive to better themselves find themselves struggling financially, whilst those who sponge off the state wallow in cash handed out by this government.
Perhaps that is why so many of my graducating class are choosing to emigrate to distant shores where they are free of such pressures and frustration
Kate, Northants, UK,
The young get criticised for binge drinking. But with the kind of future described in this article who can blame them? Who wouldn't do the same?
Peter Kellow, Lesneven, France
The rich have their tax loopholes, the poor have the state handouts and council houses - who pays for it? The 9-5 hardworking middle class. They talked about riots on the street because of the gap between the rich and the poor...what about the middle-class?! You are 'posh' if you speak well, or if you go to university...accused of sponging off of your parents.
We have reached a state today that whoever is working hard to improve their situation in life is mocked at - by those who DON'T pay taxes at all. Save the MiddleClass.
Vishal, St. Albans, Herts