Britain's youth are steadily being treated worse and worse

Intergenerational index spikes at 128 for 2010

Britain's intergenerational unfairness was 28 per cent worse in 2010 than it was in 2000, and over 50 per cent worse than it was 1990, according to new research from the Intergenerational Foundation. The increase from 2009 to 2010 alone was almost 6 per cent.

The IF created the intergenerational index to measure, in a systematic way, the extent of intergenerational unfairness. Normalised so that the year 2000 has an intergenerational index of 100, we can see the steady increase throughout the early noughties turn into a sharp spike following the crash:

Looking at the breakdown of the index reveals the reasons for the recent spike. The IF look at nine different areas: Unemployment, housing, pensions, government debt, participation in democracy, health, income, environmental impact and education. Of the nine, only environmental impact has been consistently getting better, with the UK's greenhouse gas emmissions dropping 15 of the last 20 years. Every other measure has been getting worse.

There are some questionable choices in the index, however. Worst of all is the measurement of government debt. It is not clear whether increasing government debt is intergenerationally unfair at all. Right now, for instance, the absolute best thing for young people in Britain would be for government debt to increase as the coalition u-turns on austerity. The generalised excuse, that debt is borrowing against future generations to spend now, doesn't mean that all debt is bad for future generations; yet the index treats it as such.

Similarly, the chosen measures for "participation in democracy" are average age of councillors and turnout of 25 to 34 year-olds. It seems odd to take what is definitely a choice on the part of young people not to get involved in politics and pretend that it is on the same level as, say, the precipitous drop in housebuilding to the lowest levels since the second world war:

Much of the recent spike, however, comes from components of the index which are inarguably on-topic. The large increase in government debt between 2009 and 2010 raised its part of the index by almost thirty points, but three other areas also rose by over ten points each. As seen above, the housing situation has got worse rather sharply, leading its part of the index to rise from 120 to 130.

The index also highlights pensions as a growing problem. The cost of state pensions in relation to the size of the workforce, and the cost of unfunded public sector pensions, pushes the pension section of the index up by another 13 points.

But one of the worst changes is that of education. A spike in the average private contribution to tuition fees – and this is for 2010, so that increase is nothing to do with this government – meant that education went from a steady contributor to intergenerational fairness, with costs going down and standards increasing, to a component as bad as it has been since 1999.

The full affect of the various components is broken down:

Laurence J. Kotlikoff, a professor of Economics at Boston University, ends his foreword:

As the Intergenerational Foundation's vitally important Intergenerational Index makes vividly clear, the UK is failing miserably. . . The Index can be viewed as an Adults' Report Card, and it shows a failing grade.

For all the methodological problems, the conclusion seems clear: when the recession hit, the response of the Labour government was to pile the costs on to young people and future generations, while saving those who were deemed to have already contributed from too much hardship. Many of the component measures can only have gone down in the last few years, but how far remains to be seen.

Pensions may be one of the largest contributors to intergenerational inequality. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com