The Social Market Foundation (SMF) has floated a "Citizens Advance" scheme that would let young adults receive a lump‑sum payment of just over £12,500 now, in exchange for postponing their state pension by a year . the idea targets 28‑year‑olds who have at least ten years of National Insurance contributions and aims to help them onto the property ladder amid soaring house prices.

£12,500 Advance Targets 28‑Year‑Olds with Ten‑Year NI Record

Under the SMF plan, eligible individuals would receive a one‑off payment of more than £12,500, the same amount as the full new state pension for someone with 35 years of contributions (£12,547.60). Recipients must then work an additional year before qualifying for their pension, which is currently set to begin at age 68. the think tank frames the move as a "state alternative to the Bank of Mum and Dad" for first‑time buyers.

£8 Billion Initial Cost Could Be Offset by Delayed Payments

The SMF estimates the scheme would cost about £8 billion in its first year, a fraction of the £146.1 billion Britain spent on state pensions in 2025‑26. Because the advance pushes pension receipts back by a year, the government expects to recoup the outlay over time. According to the report, the financial impact would be modest compared with the overall pension budget.

16% of Surveyed Young Adults Would Use Cash for House Deposits

In a survey of 2,500 adults aged 25‑40, 16% said they would channel the advance into a house deposit, while 18% would use it to pay off debt and 13% to build an emergency fund. If both partners in a couple took the payment,the combined £25,000 could almost cover a 10% deposit on the average British home, priced at roughly £268,000. Overall, 54% of respondents expressed a positive view of the proposal.

Will the Advance Push Property Prices Higher?

Critics warn that injecting cash into the market could nudge house prices upward, effectively handing a £12,500 windfall to current homeowners while forcing future retirees to work longer. A social‑media commentator suggested the policy might simply add the advance amount to average prices. The SMF counters that only a minority (16%) would use the money for property, so any inflationary effect should be "very modesst".

First‑Time Buyers Still Rely Heavily on Family Wealth

Savills research shows 53% of first‑time buyers received family help for their deposit in 2025, amounting to £8 .3 billion, with an additional £11 billion coming from gifts and inheritances. The average age of a first‑time buyer in England has risen to 34 from 29 in the 1990s, underscoring the growing barriers to homeownership that the Citizens Advance seeks to address.