Lords Report Warns UK Is Unprepared For An Ageing Society

A new report from the House of Lords Economic Affairs Committee has warned that the UK is significantly underprepared for the economic and social impacts of an ageing population.

The report, Preparing for an ageing society, highlights how rising life expectancy and declining birth rates will place increasing pressure on public finances, public services and the workforce over the coming decades. The Committee concludes that successive governments have failed to develop a coherent, long-term strategy to respond to these demographic changes.

The Committee argues that raising the State Pension Age alone will not address the challenge, noting that many people leave the workforce well before reaching pension age, often due to ill health or caring responsibilities. It calls instead for stronger incentives and support to help people in their mid-50s to mid-60s remain in, or return to, work.

The report also finds that higher levels of immigration or attempts to increase fertility rates are unlikely to provide a sufficient solution on their own. Instead, it stresses the need for earlier and more realistic financial planning across the life course, including better public understanding of the true costs of retirement.

Key concerns raised include the growing gap between life expectancy and healthy life expectancy, the impact of poor health on workforce participation, and the continuing crisis in adult social care. The Committee warns that without action, the UK faces a shrinking tax base alongside rising demand for pensions, health care and social care.

The Office for Budget Responsibility forecasts cited in the report suggest that, on current policy settings, public debt could rise to unsustainable levels over the long term as the proportion of older people increases relative to those in work.

The Committee concludes that the Government must begin addressing the implications of an ageing society now, rather than continuing to rely on short-term or piecemeal measures.

READ THE REPORT HERE

While the Committee’s report does not focus specifically on rural areas, the challenges it identifies are already more acute in many rural communities.

Rural England has a significantly older age profile than urban areas: more than one in four people living in rural settlements are aged 65 or over, compared with fewer than one in five in urban areas outside London.

In more remote rural areas, almost three in ten residents are already aged 65+. This gap is widening over time, with the average age in rural areas rising faster than in urban England.

Population projections suggest that the number of people aged 65 and over in rural areas will grow more quickly than in urban areas over the coming decades, intensifying pressures on health, care, transport and local services that are already harder and more costly to deliver in rural settings.

As national policy responds to the realities of an ageing society, it will be critical that funding, workforce planning and service design properly reflect these demographic differences, so that older people in rural communities are not left behind.

Source: DEFRA, Statistical Digest of Rural England (2025); ONS population projections.