The pay gap between the over-50s and under-21s has grown by 50% in the past 15 years, according to a report by the Intergenerational Foundation.

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Its Squeezed youth: the intergenerational pay gap and the cost of living crisis report, which analysed government data, found that wages for those aged between 18 and 21 have fallen by 19% in real terms since 1997, while the over-50s have seen a 25% increase in their earnings.

It also found that wages for employees aged between 22 and 29 have remained virtually stagnant over the same period, rising only 2%, well behind the rate of inflation.

Angus Hanton, co-founder of the Intergenerational Foundation, said: “This double squeeze on wages and living costs provides yet further evidence that younger generations are lagging behind older generations, both in terms of relative pay and the cost of living.

“The young are the new poor and policy-makers must do more to protect them.”