Baroness McGregor-Smith (Non-Afl)

My Lords, I congratulate the Economic Affairs Committee on its excellent report. One passage particularly struck me: paragraph 40, where, in discussing the implications of an ageing society, Richard Hughes of the OBR highlighted the pressures that demographic change will place on the public finances. Those pressures are real, and they cannot be ignored. Yet I am concerned when older people are viewed principally through the lens of cost and dependency. Too often, the debate focuses on what older people will require rather than what they can continue to contribute. Older people are workers, carers, volunteers, mentors, entrepreneurs and taxpayers. Their contribution to our economy and our communities is immense. We should therefore view an ageing society not simply as a challenge to be managed, but as an opportunity to be embraced. Having spent all my career in UK and global businesses, I have seen at first hand that experienced employees bring great experience, judgments and resilience. Too many people, however, leave the workforce—not because they wish to, but because poor health, caring responsibilities or inflexible employment practices make it difficult for them to remain. I have three requests to make today to support businesses and business growth. First, on healthier lives, we should shift more resources from treating ill health to preventing it. We need a national focus on healthy life expectancy, with prevention, physical activity, including strength training, and healthier ageing recognised as investments that reduce future pressure on both the NHS and the public finances. Secondly, on skills, we need to support a genuinely lifelong approach to learning. Apprenticeships, retraining and digital skills should be accessible throughout anyone’s full and longer working life. The apprenticeship levy should be fundamentally reviewed to ensure it is sufficiently flexible for an economy being transformed by AI and longer careers. We should remember that the apprenticeship levy was devised well before we even discussed generative and agentic AI. Thirdly, on employment, we should make increasing employment among older workers a clear economic priority. Greater flexibility, phased retirement and stronger occupational health provision would enable more people to remain economically active for longer. Let us not forget: 40% of our construction workers will be retiring in the next decade. If we are serious about building homes and infrastructure, we really will need more. The most sustainable response to an ageing society is to improve healthy life expectancy, strengthen productivity and enable more people to remain active contributors for longer. This will reduce the pressure on our public finances and support business growth. I welcome this report and look forward to the Government’s response.