COVID spotlighted inequality. Europe must act—or lose a generation to austerity’s long shadow and policy neglect.

The COVID‑19 pandemic did not create inequality: it merely switched on floodlights over a landscape already scarred by austerity. My latest book, The Lost Generation of COVID‑19, charts how a decade of fiscal retrenchment hollowed out the social determinants of health: schools, welfare, housing — and left the youngest in society uniquely exposed. Yet, the argument reaches beyond Westminster, and even beyond the shores of the United Kingdom. If Europe wishes to revive the promise of social democracy, it must treat the fate of this cohort as the litmus test of its moral seriousness.
The numbers speak with chilling clarity. By 2023 disadvantaged pupils in England were more than 19 months behind their peers at GCSE — an inequality that had actually narrowed prior to 2010, only to widen inexorably after years of austerity driven cuts and pandemic disruption. An Institute for Fiscal Studies analysis, finds that, even before COVID‑19 hit, real‑terms spending per pupil in the poorest English schools had fallen by 9 percent; the pandemic turned that fissure into a chasm, reversing a decade of progress in reading and mathematics. Add the digital divide, one in four low‑income households lacked an adequate device for remote learning — and you have an educational long COVID whose symptoms will be felt for life.
Learning loss is not a mere technical problem: it is a biological one. Childhood cognitive setbacks correlate with higher adult incidence of cardiovascular disease, type 2 diabetes and premature mortality, relationships I map in detail in Chapter 1 of the book. The Office for National Statistics has already recorded a sharp post‑pandemic rise in moderate‑to‑severe depression among 16‑ to 24‑year‑olds, now standing at 24 per cent. That is not just a mental‑health service crisis; it is a crisis of social reproduction.
Critically, these scars intersect with class, race and migration status. As Social Europe has previously argued, the virus struck hardest where insecure work, overcrowded housing and racialised disadvantage overlap. My research extends that lens to children: Black pupils were twice as likely as their white peers to experience bereavement, while new‑arrival households, often barred from mainstream welfare, suffered food insecurity at rates unseen in post‑war Britain. To describe this as individual misfortune is to evade the structural authorship of the state.
What, then, of policy? The book advances a “Hayre Doctrine”, a five‑pillar settlement designed to insulate the next generation from compound shocks:
The Hayre Doctrine — five tests for a society that refuses to sacrifice its young:
- The Equity Dividend: legislate a Child Health & Education Sovereign Fund, financed by a 2 percent net‑wealth levy on the top decile, to bankroll universal, nutritionally balanced free school meals 365 days a year; guarantee a 100 Mbps “right to bandwidth” for every household; and automate early‑years funding so that money follows deprivation in real time.
- Nutritional Sovereignty: pass a National Children’s Food Guarantee that secures every child a weekly basket of fresh produce and protein priced at least 20 percent below market through state procurement; establish community kitchens on every high street; and plough the receipts of an expanded sugar‑and‑salt levy directly into fruit‑and‑veg subsidies, extinguishing the austerity‑era food‑bank boom.
- Homes as Health Infrastructure: create a Youth Housing Commonwealth by empowering councils with first‑refusal rights over derelict or speculative property, converting it into zero‑carbon cooperative housing for under‑30s, with rents capped at a quarter of the real living wage and on‑site mental‑health teams.
- The Health‑First Workweek: legislate a four‑day, 32‑hour standard with no wage loss up to the median salary, backed by compulsory employer mental‑health audits and a €50‑per‑employee levy for non‑compliance to expand community psychiatry: an evidence‑based investment that returns up to four euros for every euro spent
- The Intergenerational Equity Ledger: establish an Office for Future Generations wielding a binding veto over any fiscal or regulatory act that worsens life‑course health outcomes or net carbon debt for the under‑25s; every budget must carry a published distributional impact scorecard.
None of this is utopian. The IFS calculates that each month of learning regained yields lifetime earnings uplifts worth £8 billion to the exchequer: an internal rate of return no Treasury bean‑counter could scorn. Likewise, modelling by the WHO Regional Office for Europe shows that every euro invested in school‑based mental‑health prevention saves four euros in future health‑care and productivity costs — a dividend with which even fiscal hawks can live.
Europe’s progressives must also confront their own shortfalls. The EU’s Recovery and Resilience Facility, laudable though it is, channels barely 2 percent of its envelope into child‑centred social investment; industrial policy is roaring back, yet social policy remains a footnote. If the Union wishes to justify its existence in the eyes of a disenchanted youth, it must close that gap, embedding child‑well‑being targets alongside green and digital metrics in the next Stability and Growth Pact cycle.
Equally, unions and civil society; so often relegated to the margins of technocratic debate, should be granted co‑design authority over local recovery plans. Their on‑the‑ground knowledge of hunger, housing and hardship proved indispensable during lockdown, when mutual‑aid networks kept entire estates afloat while Whitehall dithered. A truly deliberative democracy cannot remain content with consultation; it must institutionalise participation.
The pandemic has already rewritten our sense of the possible. States that were told, for years, that “there is no magic money tree” discovered quantitative easing on a wartime scale; landlords who habitually evicted tenants were halted by statute; rough sleepers were housed overnight in hotels that had stood half‑empty for years. The question, therefore, is not capacity but will. Social democracy must recall its founding insight: freedom is hollow without material security, and equality is the pre‑condition of liberty. Re‑parsing that insight for the post‑COVID generation is an existential task. If we fail, if we allow today’s under‑25s to carry the compound interest of our policy myopia, we shall witness a social‑health crisis that dwarfs the pandemic itself. But if we succeed, the Lost Generation may yet become the Reclaimed Generation: the living proof that societies can correct their course when confronted with the moral clarity of catastrophe. The choice is ours; history will be our audit.
Dr Jatinder Hayre is an established public health academic and medical doctor recognised for his research on health inequalities and social determinants of health. He is the author ofThe Lost Generation of COVID-19.