Budget 2022: Younger Generations Still Struggling with Personal Finances, Says Plum CEO

In a world where financial security seems increasingly out of reach for younger generations, Victor Trokoudes, founder and CEO at smart money app Plum, has spoken out about the lack of support offered in the recent Budget. Trokoudes highlights the struggles faced by young people in terms of personal finances, from high childcare costs to unaffordable housing prices.

One of the key issues Trokoudes addresses is the lack of support for families with children, particularly when it comes to childcare. He emphasizes the need for a fairer system that provides adequate support for working parents and childcare providers. While the Chancellor’s announcement of ‘guaranteed rates’ for childcare providers is a step in the right direction, Trokoudes raises concerns about whether this will be enough to cover the costs of delivering additional free childcare hours.

Trokoudes also points out the unfair support cut-offs for child benefit and tax-free childcare, which disproportionately affect hard-working families, especially single parents. He welcomes the proposed changes to base this support on overall household income rather than individual earnings, as well as the increase in the threshold and changes to the taper for this support, which will expand access to this important benefit.

When it comes to housing, Trokoudes highlights the significant financial challenge faced by young people in terms of affordable housing. With rising interest rates on mortgages and soaring housing prices, many young adults are struggling to get a foot on the property ladder. Despite expectations of base rate cuts from the Bank of England, there was little in the Budget to reassure the 1.5 million households due to remortgage this year.

Overall, Trokoudes’ insights shed light on the financial struggles faced by younger generations and the lack of support offered in the recent Budget. As the founder of a smart money app, he advocates for fairer systems and increased support for working families, particularly in terms of childcare and housing. It’s clear that more needs to be done to address the economic challenges faced by young people today.