A stark warning has been issued by a House of Lords committee, stating that younger generations are set to suffer the most severe consequences from the UK's rapidly ageing population. The report, published on 19 December 2025, argues that without urgent and significant policy changes, the demographic shift will place an unsustainable burden on the working-age population.
The Core Findings of the Lords' Report
The report from the House of Lords Intergenerational Fairness and Provision Committee paints a concerning picture of the future. It highlights that the number of people aged 65 and over is projected to increase by a third, reaching over 16 million by 2040. Simultaneously, the number of people of traditional working age is expected to grow at a much slower rate.
This demographic imbalance means a shrinking workforce will be required to support a growing number of pensioners through taxes, potentially crippling public finances. The committee, chaired by Lord True, concluded that the current trajectory is "unsustainable" and that young people today will face a future of higher taxes, lower public spending on services they use, and a reduced standard of living compared to their parents' generation.
Specific Impacts on the Younger Generation
The consequences outlined in the report are multifaceted and severe. A primary concern is the strain on the state pension and health and social care systems, which are predominantly funded by national insurance and income tax from workers. With fewer workers per retiree, the tax burden on each individual is set to rise dramatically.
Furthermore, the committee warned that spending on areas crucial to younger people, such as education, housing, and family support, will be squeezed as a greater proportion of public funds is diverted to pensioner benefits and adult social care. This creates a double disadvantage: young adults will pay more into the system while receiving less direct benefit from it.
The report also pointed to the housing crisis as a key area of intergenerational unfairness, with older generations more likely to own valuable property while many young people are locked out of the market, facing high rents and difficulty saving for deposits.
Calls for Government Action and Policy Reform
The Lords' committee did not merely diagnose the problem; it called for immediate and bold action from the government. Key recommendations include a fundamental review of how pensions, social care, and taxation are funded to ensure the system is fair across generations.
Suggested measures involve reforming property taxation to address housing wealth disparities, encouraging longer working lives through flexible retirement options, and investing in skills and productivity to grow the economic pie rather than just redistributing a shrinking one. The committee emphasised that delaying these difficult decisions will only make the eventual solutions more painful.
In essence, the report serves as a clarion call to policymakers, urging them to look beyond short-term electoral cycles and plan for the long-term demographic reality. The future prosperity and cohesion of British society, it argues, depend on achieving a new balance between the needs of the old and the opportunities for the young.
