Older workers make up the largest group of Brits out of the workforce for a sustained period and could benefit from some targetted assistance from the Department for Work and Pensions, a charity has warned
During the first two weeks of the new Labour administration, major changes have been announced at the Department for Work and Pensions (DWP) to get some of the 9.4 million ‘inactive’ workers back into employment. This is part of Sir Keir Starmer’s mission to unlock growth and better fund public services, but there is one age cohort in particular that the new government could help and boost the economy by £9 billion.
The Centre for Aging Better has urged Labour to focus employment support on the over 50s, many of whom dropped out of the Labour market during the Covid pandemic. This age group makes up a whopping 40 per cent of all those out of work and could represent £1.6 billion in higher tax receipts for Chancellor Rachel Reeves, if they could be helped back into employment.
New DWP Secretary Liz Kendall revealed during a visit to a Jobentre in Leeds on Friday a raft of changes under the ‘Back to Work Plan’, including more apprenticeship and work support for young people, focusing on the growing portion of society that has become economically inactive. The age charity calling on Labour to focus support on older age groups said: “If the government gets these reforms right, it could go a long way to helping to meet their mission to kickstart economic growth.”
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The number of people consistently out of work for four weeks or more grew by over 300,000 at the start of this year, with the UK remaining the only leading world economy not to see its employment levels return to pre-pandemic standards. Because of this, Work and Pensions Secretary, Liz Kendall MP, called Labour’s drive for growth its “number one mission” and said that economic inactivity was “holding Britain back”.
She added: “it’s bad for people, it’s bad for businesses, and it’s bad for growth.”
Labour plans to streamline employment support administered by the DWP by rolling together Jobcentre Plus and the National Careers Service, aiming to get more people into work and find better-paying jobs. Kendall also revealed greater support for disabled people both into and at work by handing greater power to local areas.
While these measures will help some of the millions of over-50s out of the workforce, the DWP did not announce any policies to specifically aid the many older workers who dropped out of employment for a variety of reasons during the pandemic. According to the charity, this group might need more help to get back into work and boost growth.
Dr Emily Andrews, Deputy Director for Work at the Centre for Ageing Better, said: “Reigniting growth and raising productivity are rightly key priorities for this government, but they will be unachievable without improving the employment prospects of workers aged 50 and over.
“We welcome Liz Kendall’s commitment to reforming employment support to ensure it gives people more opportunities – and her interest in how Jobcentre works with the over 50s group.”
Dr Andrews added: “It is older workers’ participation in the labour market that has been disproportionately impacted since the pandemic and which has not bounced back like it has for other age groups. And this is why this age group needs specific, targeted support.
“Creating a more localized, open approach to employment support – with high standards of support for the over 50s – is the right way to go. Our own research and testing shows that explicitly-targeted, localised support could make a big difference.
“If the government gets these reforms right, it could go a long way to helping to meet their mission to kickstart economic growth. Centre for Ageing Better analysis shows that closing the employment gap for 50+ workers and other age groups could increase GDP by at least £9bn a year and boost income tax and NICs revenues by £1.6bn a year.”
