The cost of dealing with the country's ageing population will increase government spending by about 4% of GDP - or £61bn in today's terms - by the 2060s, according to government projections.
Continued from previous page... The OBR said:
Spending on health would increase from 7% of GDP in 2017-2018 to 8.8% of GDP by 2062-2063. It said this would rise smoothly as the population gets older.
State pension costs are set to increase from 5.8% of GDP to 8.4%. However, this is lower than was projected last year - partly due to the start of the single tier state pension, which reduces spending in 2062-2063 by 0.7%.
The cost of long-term care will rise from 1.3% of GDP in 2017-18 to 2.4% in 2062-2063, "reflecting the ageing of the population and the government's announcement of a lifetime cap on certain long-term care expenses incurred by individuals, following the Dilnot Review".
It said his policy recommendations would increase spending by 0.3% of GDP by 2062-63.
