The UK’s ageing population is set to put unsustainable pressure on public finances and living standards, according to a recent inquiry by the House of Lords. The report, titled “Preparing for an Ageing Society,” warns that young people will suffer the most from the government’s failure to address this long-term challenge.
The economic affairs committee, chaired by Lord Wood of Anfield, found that traditional policy levers such as raising the state pension age, increasing immigration, or boosting fertility rates would not be enough to offset the combined impact of falling birth rates and rising life expectancy. Instead, the report argues that the single biggest improvement to the UK’s fiscal outlook would come from encouraging and incentivising people in their mid-50s to mid-60s to remain in or return to the workforce.
The report also urged ministers to rethink assumptions about older workers, finding that age discrimination does not play a significant role in pushing people out of the workplace. The problem, the committee suggests, may lie elsewhere.
Crucially, the report stressed that keeping older people in work is inextricably linked to fixing the social care system. With fewer children in families, the supply of informal care provided by younger relatives is shrinking, exacerbating the pressure on the formal care workforce.
“The lack of a meaningful solution to the adult social care crisis – which has been recognised for many years – remains a scandal,” Lord Wood said. “We urge the government to address this urgently.”
The committee warned that an ageing population would require more care workers, inevitably reducing the number of people available to other parts of the economy.
In response, a government spokesperson acknowledged the challenges of an ageing population and said the government is taking action to improve healthy life expectancy and reform adult social care, including providing over £4bn in additional funding by 2028-29. The spokesperson also mentioned the government’s “Get Britain Working” reforms to boost employment through overhauling job centres and providing personalised work and skills support.
However, the House of Lords report paints a concerning picture of the long-term challenges facing the UK, and the urgent need for the government to take decisive action to address the impact of the country’s ageing population.
