Britain On Brink Of Lasting Divide, Says Tsar

The Government's social mobility tsar has told Sky News that Britain is "on the brink of becoming a permanently divided nation" with millions facing low wages and young people locked out of the housing market.

Alan Milburn criticised the Conservatives, Labour and the Lib Dems for failing to tackle the problem and called on them all to take urgent action to change their agendas.

He said: "Look at the jobs market, five million people now earning less than the living wage. Look at the housing market, the rate of home ownership among young people having halved over the last 20 years.

"Look what has happened to professional employment too, many interns not being paid - we think that should be banned once and for all."

Mr Milburn, who chairs the Government's Social Mobility Commission that has published its second State of the Nation report, warned: "The risk is that this generation of young people ends up having far worse prospects to progress than their parents' generation."

The call for an end to unpaid internships, seen to give an unfair advantage to young people with family connections and financial backing are among a list of recommendations.

It comes as a study by another group, the Social Integration Commission , suggests Britain's lack of social integration is costing the economy up to £6bn.

Chaired by Matthew Taylor, the commission warns of a future in which gated communities are the norm, schools are riven with division and fear of crime is on the rise.

Mr Taylor, who is chief executive of the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) and a former aide to Tony Blair, said the group were ringing an "early alarm bell" on the levels of segregation in society - and its impact.

The researchers have shown that across Britain people do not fall in love with or form friendships across ethnic and social divides at anything like the rate they would if race and class were irrelevant.

The biggest single divide is between the professionals and executives in the highest socioeconomic group and the unemployed and casual labourers in the lowest.

These divisions could cost up to 0.5% of the UK's total GDP, according to today's conclusions.

The costs include unemployment and productivity, with the study pointing out that a large proportion of jobs are obtained through networks.

Mr Taylor said: "Unless we pull down the barriers that can divide us, ethnic and social divisions in our schools could grow, gated communities could become the norm, and widespread distrust and fear of crime could rise.

"This is not a UK that is currently recognisable, but the seeds of its existence are being sown."