British Council-boomerang generation
Transcript of the podcast
Presenter: Good afternoon and welcome to Modern Times. On today’s show we’ll be talking about the ‘boomerang generation’. That’s the new term that’s being used to describe the phenomenon of young people, such as university graduates, who move back home to live with their parents. According to recent research, there are now approximately 6.8 million over 18 year olds living with their parents in the UK. To talk about the reasons for this trend, I have with me in the studio today Helen Campbell, lecturer in Economics at Thames University. Hello Helen
Lecturer: Good afternoon David
Presenter: So, Helen, what is causing this trend of the so called boomerang generation
Lecturer: That’s a good question. You see, there are a number of social and economic factors at play here. Firstly, as we all know, student loans have largely replaced the old university grant system in the UK. And, as…as a result, student debt has risen steadily each year. According to the most recent figures, the level of debt rose again last year by 18.7%
Presenter: 18.7%. But what does that mean in real terms
Lecturer: Well, if we…let’s take the average graduate today; she’s now likely to start her working life owing about £۱۲,۰۰۰ to the bank
Presenter: I see. That’s certainly a lot of money for a young person
Lecturer: Yes, and that’s why so many young people are now moving back in with their families when they finish university or choosing to stay in the parental home while they study. Um, the other important factor that is behind this trend is the high cost of housing nowadays. It’s… it’s an extremely hard time for first-time buyers. You know, the average person now has to save for five years to get a deposit on a home
Presenter: How much of a deposit will they need
Lecturer: According to a recent bank survey, about £۲۴,۰۰۰ and it seems the average first-time buyer is likely to be 33 years old these days
Presenter: Does this mean that young people are going to be more financially dependent on their parents for longer
Lecturer: It certainly looks that way. It makes sense for people to save money on rent and live with their parents for a few years at least. The survey has found that less than half the 6.8 million who are now living with their parents are paying rent and many of them receive weekly allowances from their parents
Presenter: Thank you Helen. Well, it seems that in the past, the trend has always been for each generation to be better off than the previous one. But it looks like this trend may not continue into the next generation. Our lines are now open to callers who want to discuss the boomerang generation with us
