Gen Zs ‘buoyed’ by Budget but older investors feeling worse off, survey finds

Gen Zs and younger millennials have felt a post-Budget boost but the Chancellor has failed to get the backing of older investors, new research suggests.

Chancellor John Healey said he was providing “breathing space” to households and businesses at a time when the cost of living is rising, announcing measures such as a one-off £100 energy payment.

But he also unveiled tax rises including on property rental and savings income in a bid to raise more cash for the Treasury.

Around 78% of Gen Z investors and 68% of millennials feel positively about last month’s Budget, according to research by Charles Stanley Direct.

Younger investors are also inspired to turn to AI tools to help them work out the next steps – with around half of Gen Zs saying so.

The survey of 1,000 DIY investors in the UK – meaning those who choose their own stocks and shares – revealed that the sense of optimism in the aftermath of the event was not matched by older counterparts.

Around 37% of Gen X were positive about the Budget, and this falls to 28% of baby boomers that said so.

Of those who were feeling negatively about the Budget, almost half said it is because they will be worse off financially as a result.

Rob Morgan, chief investment analyst for Charles Stanley Direct, said: “The handful of rabbits Healey pulled from his hat were predominantly aimed at appealing to younger voters.

“Between increasing the side-hustle tax-free allowance, an Isa specifically designed for first-time buyers, and the UK’s first ever starter Isa, it’s understandable that Gen Z and younger millennials will feel buoyed by the Budget.

“Meanwhile, the extra tax on property and savings income is going to increase the burden for the wealthy – who are typically older.

“And measures specifically designed to support older populations – the pension allowance, and the U-turn on lower cash Isa allowance – are more marginal.”

Meanwhile, Mr Healey confirmed that the national minimum wage will rise again, by 3.9%, in April.

Separate research by Barclays found that almost half of Gen Zs said that measure will provide relief with the cost of living.

However, a third of UK adults said the Budget did not go far enough to support households and 32% were now less confident about non-essential spending.

Jack Meaning, Barclays’ chief UK economist, said British households were “telling a more cautious story”.

“Energy support will help at the margin, but many are still feeling the squeeze and holding back on non-essential spending,” he said.