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This article examines recent policy developments in mature age employment in Australia and the United Kingdom (UK) within a context of population ageing and a long-term decline in activity rates amongst people aged 45 years and over. The authors examined recent data and policy statements in the UK and Australia and findings from interviews with government and industry representatives in the UK. The article begins with a brief review of the position of older workers in the Australian and UK labour markets and then compares recent Australian and UK public policy initiatives within this area. The research found that population ageing, declining activity rates and skills among older workers, and discrimination against them, are important policy issues in both countries. Policy initiatives and differences are discussed and it is concluded that in order to improve the employment prospects of older workers, the issue needs to be addressed at individual, organisational and societal levels.