The House of Lords Economic Affairs Committee today invites
written submissions to its new inquiry on the impact of ageing on
the UK economy.
The inquiry will consider the opportunities and challenges the
Government needs to consider given the demographic trend, the
policies necessary to adapt to this future and the broader
behavioural changes that may be required.
The UK is an ageing society. In 2023 the total fertility rate for
England and Wales stood at 1.44 children per woman, the lowest
rate on record and below the level required to maintain a stable
population. The population has continued to rise only as a result
of immigration.
With life expectancy increasing, the UK can expect 27 per cent of
its population to be over 65 by 2072, compared to around 19 per
cent in 2022. The percentage of the population over 85 (around
2.5 per cent in 2022) is set to nearly double and reach
approximately 3.3 million by 2047.
The committee is seeking answers to the following questions:
- What factors might affect the currently projected demographic
trends? Are there critical inflexion points for the birth rate,
with qualitatively different effects should the rate fall below a
certain level? If so, what policies might protect against falling
below that level?
- What role does immigration play in developing trends? Do
different types of immigration entail different trends? Are any
changes to the Government's immigration regime needed to reflect
the UK's future demographic characteristics?
- What changes to the workforce are needed to support an ageing
population? How does the productivity of older workers compare to
those who are younger? How might the productivity of older
workers be improved?
- What incentives regarding workforce participation by older
individuals are created by the various existing tax and pension
arrangements? What policies should the Government pursue to
encourage and support people to remain in the workforce later in
life? How can the recruitment and retention of older people be
supported? What effects would greater workplace participation
amongst the older population have on economic growth?
- What policies aimed at younger people are necessary given the
broader ageing of the UK? How might the course of working lives
have to change as the UK transitions to an older population?
- Will AI and other technologies deliver a sufficient rise in
productivity to offset the impact of an ageing and shrinking
workforce on the economy?
- Which countries can the UK learn from in facing the
demographic transition to an older population?
- Are there any issues relating to intergenerational fairness
raised by a shift towards an older population? Are there policies
which might improve the efficiency of the transfer of assets
between generations?
Commenting on the launch of the new inquiry, , Chair of the Economic
Affairs Committee, said:
“As the UK's population ages the economy and wider society will
need to adapt. Our inquiry will look at the policies necessary to
prepare for this future given the demographic trends and the
broader behavioural changes that may be required.
“To inform our work we want to hear from as broad a range of
people as possible. If you have a view on any aspect of our
inquiry, look at our call for evidence and let us know what you
think.”
The deadline for the submission of written evidence is
00:01 on Monday 28 April 2025.
Read the call for evidence and find
out how to submit evidence.
