Budget 2016: George Osborne throws well-off millennials a bone with Lifetime ISAs

In his so-called "budget for the next generation", Chancellor George Osborne introduced Lifetime Individual Savings Accounts (ISAs), boosting opportunities for young people in the UK. Anyone under the age of 40 will be able to apply for a Lifetime ISA, which will boost every £4 people save with an extra £1 in government money.

The money is set to help young people either enter the property ladder or save up for a pension. It has been compared to the 401k scheme in the US, with the difference being the fact that the government will boost savings in the UK, while employers have this responsibility in the case of 401ks.

Although the new ISA legislation seems like a great move for millennials, critics have already pointed out one major flaw: a generation that is largely unable to save, cannot do much with a boost to savings.

"Lifetime ISA of government giving under 40s £1 for every £4 they save is great for the well-off young," said Noble Francis, the economics director of the Construction Products Association. "The poorer ones can't save."

With unemployment rate among UK people between 18 and 24 at 12.1% and an increasing number of young people on zero-hour contracts, a large proportion of millennials will have a hard time saving in the first place.

Osborne has also been slammed for his claim that young people have no pension because "they find pensions too complicated". Many young people took to social media to vent their anger, saying that their lack of pensions saving is due to the fact they have no money left at the end of the month.

Osborne did, however, offer a tax break for those involved in the sharing economy. The Chancellor gave those involved in the gig economy two £1,000 tax-free allowances, one for property and one for trading.

The Tory's aid to micro-entrepreneurs can be seen as a boost for young people, considering research shows that 50% of people making money from the gig economy fall in the age group of 25-34 years.

Jeremy Corbyn, the leader of the Labour party, condemned Osborne's Budget and its implications for young people.

"Let us harness the optimism, the enthusiasm, the hope, the energy of young people, not burden them with debts and unaffordable housing, low-wage jobs and zero-hour contracts," Corbyn said.

"But instead act in an intergenerational way to give young people the opportunities and chances they want to build a better, more free, more equal, more content Britain than this chancellor of the exchequer has proved he is utterly incapable of doing with his budget today."

Osborne's previous budgets have included hikes in student fees and the abolishment of student grants. The chancellor has also raised the qualifying age for the shared accommodation rate to 35, from 25 before, causing many people to accuse him of delivering tough blows to young people.