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Caring for ageing population could heighten economic pressure

Caring for ageing population could heighten economic pressure
2nd December 2010

The UK could face another round of tax rises and spending cuts as the government tries to provide care for older people living with dementia and other conditions, the Office for Budget Responsibility has said.

Age-related spending, which includes education aimed at younger members of society, will rise to 27.1 per cent of the UK's GDP by 2050, according to the organisation.

"If left unaddressed, upward pressure on spending from the ageing of the population might well ... eventually put public sector net debt on an unsustainable upward trajectory," said the OBR in a report.

Spending on state and public sector pensions could cause public debt to rise to 100 per cent within the next four decades unless action is taken, the report warned.

It follows the government's unveiling of controversial plans to move forward an increase in the state pension age to 66, which will affect nearly five million people.

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