A powerful parliamentary committee has issued a stark warning to the government, urging immediate action to address the UK's unpreparedness for its ageing population. The House of Lords Economic Affairs Committee has called on the Labour administration to introduce tax breaks for people over 60 to encourage them to remain in or return to the workforce.
An "Alarmingly Unprepared" Nation
In a hard-hitting report titled Preparing for an Ageing Society, published in January 2026, the committee delivered a blunt assessment. It stated that Britain remains "alarmingly unprepared" for the profound demographic shift underway. The report heavily criticised successive governments for their failure to adequately plan for the long-term implications of an older population.
Lord Wood of Anfield, the committee’s chair, emphasised the scale of the challenge. He pointed out a significant gap in government focus, stating, "It is difficult to locate a part of government that is focused on this challenge." He warned that the biggest impact would fall on younger generations and those yet to be born, who may live into their 90s within a societal structure still designed for a 20th-century lifespan.
The Case for Tax Incentives and Ending the Social Care "Scandal"
The committee identified a clear economic solution, arguing that the greatest improvement to the fiscal outlook would come from encouraging people in their mid-50s to mid-60s to stay in or re-join work. It recommended targeted tax breaks as a key incentive to achieve this goal.
The report also highlighted a critical barrier: self-directed age discrimination. It found that "the most damaging form of age discrimination [could be] self-directed, with older workers operating under a mistaken impression of its extent and therefore limiting their own choices." This suggests that changing perceptions is as important as changing policy.
Alongside employment, the committee delivered a scathing verdict on adult social care, labelling the long-standing inaction a "scandal." Lord Wood urged the government to address this crisis with urgency, a problem recognised but unresolved for many years.
Government Response and the Path Forward
In response to the report, a government spokesperson outlined existing measures. They stated the administration recognises the challenges and is taking action to improve healthy life expectancy and reform adult social care.
The spokesperson pointed to progress towards a national care service, backed by over £4 billion in additional funding for adult social care by 2028-29 compared to 2025-26. On employment, they cited the 'Get Britain Working' reforms, which aim to boost employment through overhauled jobcentres and personalised support.
However, the Lords committee's report makes it clear that these steps may not be sufficient or fast enough. The call for specific tax incentives for the over-60s places direct pressure on the Treasury to consider innovative fiscal measures to harness the experience of older Britons and secure the nation's economic future.
