Why workforce policy must connect people, skills and opportunity across every stage of working life.

The UK’s October 2026 Budget brought renewed attention to employment, skills, productivity and the changing demands of the labour market.

Investment in apprenticeships, workforce development and artificial intelligence reflects a recognition that the UK economy needs to adapt, yet, beyond the individual measures, a more fundamental challenge remains…are we designing workforce policies around the realities of how people now enter, progress through and eventually leave working life?

At the Age Diversity Forum (ADF), we believe this question deserves much greater attention.

A collection of initiatives is not a workforce strategy

Ahead of the Budget, the Chartered Institute of Personnel and Development (CIPD) called for a coherent national workforce strategy, arguing that skills, economic inactivity, employment regulation, management capability and artificial intelligence are too frequently addressed as separate policy challenges…it is a position we recognise.

Consider the different pressures facing today’s workforce. Young people encounter difficulties entering employment, mid-career workers face changing skills requirements, caring responsibilities and technological disruption, whilst others find that opportunities for progression, retraining or continued employment become increasingly constrained as their working lives develop.

These challenges are often treated independently, with different programmes, eligibility criteria and policy objectives, yet they are connected by a common reality, employment is no longer adequately understood through a simple progression from education, to work, to retirement.

People increasingly experience career changes, periods outside employment, new learning requirements and changing personal circumstances throughout their working lives…policy needs to reflect that complexity.

From demographic change to workforce design

Population ageing is frequently presented as a challenge for pensions, healthcare and public finances. These are important considerations, but they represent only part of the picture. Demographic change also has implications for recruitment, retention, workforce participation, skills development and productivity.

The response should not simply be to encourage people to work for longer, it should be to ensure that working lives are designed to remain accessible, sustainable and productive, and that requires attention to opportunities throughout the employment lifecycle.

For example, investment in younger people’s entry into employment is essential, but so too is ensuring that workers can continue developing their skills, move between roles, adapt to technological change and remain economically active where they choose and are able to do so. These should not be seen as competing priorities, supporting one generation should not require overlooking the needs or contribution of another.

The gap between ambition and capability

Government policy can establish priorities and create incentives, but much of the practical response ultimately rests with employers. This is where another recent development becomes particularly relevant.

The CIPD’s HR Pulse Report 2026 found that 78% of surveyed UK people professionals identified future workforce planning as a priority. However, the research also highlighted gaps between organisational ambitions and the skills and resources available to deliver them.

Although the research is not specifically about age inclusion, its findings raise an important question…are organisations sufficiently equipped to understand and respond to the changing age composition, capabilities and needs of their workforces?

An employer may recognise the importance of recruiting across different age groups, supporting career development or retaining valuable experience. But recognition alone does not establish whether its recruitment systems, learning opportunities, leadership practices and workforce data support those ambitions.

This distinction between intention and organisational capability is central to ADF’s approach to age inclusion. Our Age Inclusion Benchmark examines eight dimensions of organisational practice, recognising that meaningful inclusion depends on how organisations operate, rather than simply what their policies promise.

Technology makes the question more urgent

Artificial intelligence adds another dimension to this discussion. The October Budget announced an additional £23 million for the AI Economics Institute, including research into the generational and socioeconomic implications of AI. This is a welcome recognition that technological transformation will not necessarily affect everyone in the same way, however, understanding these differences requires more than comparing age groups.

Access to training, occupational responsibilities, career stage, organisational tenure and previous experience may all influence how individuals encounter and adapt to new technologies, however, chronological age alone cannot explain these relationships.

There is a risk that workforce policy and organisational practice reinforce assumptions about who is best equipped to adopt new technologies, rather than examining the conditions that enable people to learn and contribute. A more inclusive approach would consider how access to development, opportunities to apply new skills and the design of work affect people throughout their careers.

Towards a connected approach

A whole-working-life strategy does not mean creating a separate policy programme for every age group, it means recognising that employment opportunities, skills development, health, flexibility, career transitions and retirement are interconnected.

  • For policymakers, this means considering how interventions at different stages of working life support one another, rather than operating in isolation.

  • For employers, it means developing workforce practices that accommodate changing circumstances without relying on assumptions about age or career stage.

And for both, it means using evidence to understand where opportunity is being lost, where skills are being overlooked and where existing systems may unintentionally create barriers.

The UK’s changing workforce presents significant economic and social challenges, but also opportunities to make better use of the capabilities, knowledge and experience available across generations. The challenge is to move beyond recognising demographic change and towards designing policies and workplaces capable of responding to it.

The ADF perspective

At the Age Diversity Forum, we believe age inclusion should be recognised as a fundamental consideration in workforce strategy, rather than a separate initiative focused on particular generations…the same principle applies to public policy. A strategy that supports entry into employment but overlooks progression, or encourages longer working lives without addressing the conditions needed to sustain them, risks leaving important gaps.

A whole-working-life strategy should connect national policy with organisational practice, ensuring that opportunities to enter, develop, contribute and progress are supported throughout working life. The objective should not simply be longer working lives, it should be better-designed working lives, for everyone.

References

Chartered Institute of Personnel and Development (CIPD) (2026a) Neil Carberry writes to the Chancellor calling for a coherent national workforce strategy to underpin efforts to boost economic growth. 23 October. Available at: https://www.cipd.org/en/about/public-policy/our-calls-for-action/cipd-letter-to-chancellor-october-2026-budget/

Chartered Institute of Personnel and Development (CIPD) (2026b) People teams know their priorities. With the right skills and investment, they can deliver. 27 October. Available at: https://www.cipd.org/en/about/news/people-teams-know-priorities-with-right-skills-investment-can-deliver/

HM Treasury (2026) Budget 2026. 28 October. Available at: https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html