Economic Affairs Committee launches new inquiry on preparing for an ageing society

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:

1. 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?
2. 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?
3. 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?
4. 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?
5. 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?
6. Will AI and other technologies deliver a sufficient rise in productivity to offset the impact of an ageing and shrinking workforce on the economy?
7. Which countries can the UK learn from in facing the demographic transition to an older population?
8. 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, Lord Wood of Anfield, 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.