Demographic changes and the impact on demand and need for welfare states

This chapter takes a closer look at the expected demographic changes in the European welfare states in the next 10-20 years. This is done because there is a clear connection, also historically, that especially children and the elderly are groups where there has been support to these groups for public sector spending in welfare states. This applies to the service areas of childcare and primary school education, as well as care for the elderly and/or health care related hereto. There is further a strong and clear connection between age and the consumption of health-care services. In relation to income transfers, benefits for families with children and pensions for the elderly are in focus as part of the consequences of demographic changes. The generational redistribution in welfare states, from people of working age to people outside the labour market, also means that changes in the demographic composition put pressure on the welfare state’s expenditures, even if no changes are desired to the existing service level. This also increases the need to be able to assess how and which types of requests there is an opportunity and willingness to cover, and whether the demographic changes imply a stronger pressure on the role of the welfare state, including whether, and if so how, the legitimacy of different needs can influence decision making.