Children born now will have to pay considerably more in taxes than they'll receive in benefits, compared with previous generations, new research has revealed.
A report by the National Institute of Economic and Social Research (NIECR) has found the next generation will pay £70,000 more in taxes over their lifetime than they will receive in services and benefits.
On the other hand, those people who are over 65 now have received £220,000 more in benefits and services than they have paid in taxes.
The need for a rise
The NIECR says taxes need to rise to 6% of GDP now in order to help future generations and to fund current pensions and services.
The report claims that "a broad tax rate like employers' National Insurance contributions or the standard rate of income tax" should be considered when looking at an increase.
The report states: "There is a past history of pay-as-you-go benefits which has allowed earlier generations to receive more from the state than they have contributed over their life-times and it is inevitable that there is now a net contribution which has to be paid".
This year VAT has already risen to 20% while reforms to Capital Gains Tax are expected in the Budget on 23 March.
The NIECR claims new tax rises need to be implemented "as soon as possible".