Budget 2026 – Why Britain’s economic future depends on a multigenerational workforce

The Age Diversity Forum calls for generational inclusion to become a recognised priority in UK employment and economic policy.

The UK Government’s Budget 2026 places renewed emphasis on employment, skills, productivity and economic growth. These are essential priorities for a country navigating technological change, evolving workforce requirements and significant pressures on public finances.

The Age Diversity Forum (ADF) welcomes measures designed to increase employment opportunities, develop skills and support economic participation, however, we believe the Budget also highlights a fundamental question that deserves greater attention from policymakers and business leaders…can the UK fully realise its economic potential without a coherent strategy for engaging, developing and retaining talent across every working generation? Our view is clear, a genuinely multigenerational workforce must become a central consideration in the UK’s employment and economic strategy.

Looking beyond individual generations

The Budget confirms substantial commitments to supporting young people into employment, including recruitment incentives, apprenticeships and locally delivered employment initiatives.

These investments are important and welcome, as younger generations need access to meaningful employment, opportunities to develop skills and clear pathways into sustainable careers. But workforce challenges are not confined to those entering employment. Across the economy, employers must also consider how they retain experienced employees, support later-career development, respond to changing skills requirements and enable people to remain economically active throughout longer working lives.

The contribution of different generations should not be viewed as competing priorities, instead, policymakers should recognise that the successful integration of younger and more experienced workers is essential to workforce resilience, organisational capability and long-term productivity.

Age inclusion is an economic issue

Age diversity is frequently considered within the wider framework of equality, diversity and inclusion. While fairness and equal opportunity remain fundamental, ADF believes the economic significance of age inclusion deserves considerably greater recognition.

Recruitment practices, workforce planning, career development, skills investment and employee retention all have implications for how effectively organisations utilise available talent.

Age-related assumptions can influence decisions about an individual’s capabilities, adaptability, potential or suitability for particular roles. When such assumptions shape organisational practices, employers risk overlooking valuable skills, knowledge and experience.

Conversely, organisations that recognise the strengths of a multigenerational workforce are better positioned to encourage knowledge-sharing, develop talent and respond to changing business needs.

Age inclusion must therefore be understood not simply as a matter of organisational responsibility, but as an important consideration in business performance and economic productivity.

Government policy shapes employer priorities

One of the most significant aspects of the Budget is its emphasis on encouraging employers to invest in jobs, skills and workforce development…and Government policy has considerable influence over organisational behaviour.

Funding priorities, employment incentives, public procurement requirements and economic development programmes help determine where employers direct attention and resources. The Budget’s proposals around social value, procurement and skills development provide opportunities to strengthen the relationship between public policy and inclusive employment practices.

The ADF believes policymakers should consider how age-inclusive workforce practices can be more explicitly recognised within these frameworks.

For example, organisations could be encouraged to demonstrate how they:

  • Recruit and assess candidates based on relevant capabilities rather than age-related assumptions.

  • Provide equitable access to learning, development and career progression throughout working life.

  • Support employee retention and flexibility across different career and life stages.

  • Encourage intergenerational collaboration, knowledge-sharing and skills development.

  • Understand the age composition of their workforce and identify potential barriers to inclusion.

These are practical considerations that can contribute to more effective workforce management.

Skills development must span entire working lives

The Government’s commitment to re-establishing the Union Learning Fund, alongside investment in apprenticeships and employment support, reinforces the importance of workforce skills. However, the pace of technological and economic change means that learning and development can no longer be concentrated primarily at the beginning of working life.

Employees of every generation need opportunities to acquire new capabilities, adapt to changing roles and participate in emerging areas of economic activity. This is particularly relevant as artificial intelligence and digital technologies reshape the workplace.

Assumptions that younger workers are inherently more adaptable to technology, or that experienced employees are less capable of acquiring new skills, risk reinforcing age-related stereotypes.

A multigenerational approach recognises that adaptability, innovation, experience and learning potential are not determined by age alone. Lifelong learning should be an expectation and opportunity throughout working life.

Economic inactivity requires a broader perspective

The Budget also highlights the scale of economic inactivity associated with long-term sickness and the need to support greater workforce participation…this is an important policy challenge, however, improving participation requires more than financial incentives or employment programmes.

It also means understanding the barriers individuals encounter when seeking employment, returning to work or remaining economically active. Health conditions, caring responsibilities, workplace flexibility, access to retraining and recruitment practices can all influence employment opportunities.

Age may intersect with these circumstances, creating additional challenges for some individuals, and the ADF believes that policies intended to increase workforce participation should consider these interconnected factors and encourage employers to develop genuinely inclusive approaches.

Three priorities for policymakers and employers

The Age Diversity Forum believes the ambitions of Budget 2026 can be strengthened through three commitments.

  1. Put multigenerational workforce participation on the economic policy agenda.

Employment, productivity and skills strategies should explicitly consider the opportunities and challenges facing workers across different generations and career stages.

  1. Recognise age-inclusive employment as an indicator of responsible business practice.

Government procurement, employer engagement and workforce development initiatives should encourage organisations to demonstrate effective approaches to recruitment, retention, learning and progression across age groups.

  1. Encourage organisations to understand and address age-related barriers.

Employers should be supported to assess their existing workforce practices, identify potential age-related inequalities and develop strategies that make better use of talent and experience across generations.

The ADF’s commitment

The Age Diversity Forum exists to challenge age bias and advance multigenerational inclusion within employment and organisational practice. We believe that age should be recognised as an important dimension of workforce strategy, alongside other considerations that shape opportunity, participation and organisational performance.

Our work seeks to connect policymakers, employers and other stakeholders around a shared objective: creating workplaces where individuals can contribute, develop and succeed throughout their working lives…Budget 2026 provides an opportunity to advance that conversation.

We welcome the Government’s commitment to employment, skills and economic growth, but we also encourage policymakers to adopt a more explicit multigenerational perspective when developing and evaluating future workforce initiatives.

Britain’s economic future depends not only on developing the talent of tomorrow, but also on recognising, retaining and investing in the talent available today. A productive economy needs a multigenerational workforce, and a multigenerational workforce needs policies and employers that recognise the value of every generation.

The Age Diversity Forum – Challenging age bias – Championing multigenerational inclusion.

Reference

HM Treasury (2026) Budget 2026: Breathing Space for Today, Fresh Hope for the Future. London: HM Treasury.