England and Wales have the largest annual population increase in 75 years

The net migration accounted for the largest population growth in England & Wales in 75 Years last year, while births fell to a two decade low. This highlights the changing demographic pressures that Sir Keir’s Starmer government is facing.

Office for National Statistics announced on Monday that the population of England and Wales will grow by 610,000 people to 60.9mn by mid-2023. This is the biggest annual increase since 1948.

According to Statistics Canada, 622,000 people more immigrated than emigrated during that time period.

The number of births, at 598.400, was the lowest for 21 years. This contributed to the smallest natural change — defined as the total deaths minus the total births — since 1978.

Immigration, say experts, can help ease the effects of an ageing populace on the economy and the public finances by increasing the number of people in working age.

The last Conservative government was under intense political pressure due to the rapid increase in net migration into the UK at the end of their term.

Labour’s manifesto did not include a goal for net migration. is expected to fall by 10 percent, from 685,000 today to 685 000 by 2023. Starmer’s Party pledged to “reduce reliance on overseas workers” and address the shortage of homegrown skills before the election.

Tony Travers, professor of the London School of Economics said that the ONS data would mean the new government had to either “live with a fairly high level of international immigration” or find a “way of re-engaging people who are here but not on the labour market”.

He added that “international immigration is an easy way to deal with labour shortages. But there’s a bit between what you tolerate politically and what your economy needs.”

A decrease in births is associated with a smaller share of people of working age, and an increase in older people.

According to the figures released on Monday, the number of individuals aged 75-79 increased by 4.5 percent, or approximately 110,000 people, between mid-2023 and the end of the year.

The growth rate for the entire population was 1 percent, but the population of working age — those between 20 and 65 years old — stagnated.

The ONS reported that, except for London and the West Midlands region, every other region in England and Wales had more deaths than births.

Some economists have emphasized the importance of a “longevity tax” — capitalising on older, healthier generations — while others have warned against increased pressures placed on public finances and growth.

Travers stated that as the proportion of people in the workforce is decreasing, it will likely result in a tax burden for those working unless they can increase productivity.

A UN report published last week found that 1 in 4 people in the world lived in countries whose populations had already reached their peak, such as China, Germany, and Japan.

Madeleine Sumption of Oxford University’s Migration Observatory said that the population growth in England & Wales “contributed” to higher housing costs in a nation where home building hasn’t kept up.

She added that a higher population density can “have a positive impact on innovation and productivity, and that increased migration can help the public finances”.

Sumption stated that the recent rate of population increase was unlikely to “persist” as the new visa rules, set by the previous government are likely to lower levels of inward immigration this year.