Increased productivity from new technologies in the workplace could be utilised to reverse planned increases to the state pension age, the Trades Union Congress has said.

According to the TUC’s new report Shaping Our Digital Future, the next technological revolution, including digitisation, robotics and artificial intelligence (AI), should be used to benefit working people’s lives.

For example, the report noted that income gains from higher productivity should be used to stop planned increases in the retirement age that is currently set to affect millions of people in their forties.

While the promised productivity gains from new technology is yet to be recognised, TUC quotes analysis from PwC that suggests that GDP could be 10 per cent higher in 2030 as a consequence of gains from AI.

The report said: “If we do see those benefits arrive, reversing increases in the state pension age and enabling more people to enjoy a decent retirement should be a priority. This would be one way to ensure that new technology enables a fairer share of the rewards from work, and to help those whose working lives may be disrupted by technological change.”

However, analysis from the OBR and DWP notes that for each year the state pension age is increased, 0.3 per cent is saved in state pension expenditure and one per cent more GDP is generated from the additional labour.

Currently, state pension spending is expected to increase from 5.2 per cent of GDP in 2016/17 to 6.2 per cent in 2036/37, and 7.1 per cent of GDP in 2066/67. Under the proposed changes to the state retirement age, however, spending is expected to rise to 6.7 per cent of GDP in 2066/67.

The report also suggested that benefits from new technologies could be shared with workers to offer opportunities such as gaining a share of the economic gains technology brings through wage increases, and the right to a mid-life career review and increased investment in workplace training.

TUC general secretary Frances O’Grady said: “With the UK failing to make productivity gains in the last decade, we need to make the most of the economic opportunities that new technologies are offering. Robots and AI could let us produce more for less, boosting national prosperity. But we need a debate about who benefits from this wealth, and how workers get a fair share.

“We should look on the changes ahead as an opportunity to improve the lives of working people and their families. The government could use the revenue generated to reverse policies to raise the state pension age. And businesses could use productivity gains to improve the pay and conditions of workers.

“Robots are not just terminators. Some of today’s jobs will not survive, but new jobs will be created. We must make sure that tomorrow’s jobs are no worse than today’s. They must provide fulfilling work, with good pay and conditions. And there must be funding to train people for new work if their job is made obsolete.”

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