Budget is a missed opportunity but Chancellor right to overhaul employment system failing millions

The Chancellor has announced his Spring Budget in which he has outlined his government’s tax and spending priorities.

Ageing Better welcomes his decision to postpose the increasing of the Energy Price Guarantee for three months which will reportedly save every household in the country an additional £160 on their energy bills.

We, and 135 other charities, joined broadcaster Martin Lewis’ campaign calling for the Chancellor not to go through with a proposed 20% rise in the guarantee level scheduled to come into effect in April.

The Chancellor also announced a number of new measures aimed at tackling economic inactivity and unfilled job vacancies across the country. This included a scrapping of the Work Capability Assessment, an extra £70m over the next five years for mid-life MOTs to increase participation eight-fold and £63m on Returnerships designed to provide skills training for older workers.

“This Budget is a missed opportunity to adequately support workers aged 50 and above with specific policies but we commend the Chancellor for attempting to overhaul parts of the employment system that are seriously failing millions of people. There are measures here that create opportunities to break down the barriers for older workers that have been overlooked for so long.

“The government is right to identify older workers’ employment as a high priority. We have an ageing workforce and a labour market that doesn’t work for older workers. The government should not be distracted by talk of wealthy retirees. There are nearly a million older workers in this country who want to work but currently can’t because of ageism in the workplace, ill-health, caring responsibilities and a lack of targeted employment support.

“The consequences of failing to give people in their 50s and 60s access to the work they need are dire – it consigns people to a retirement of hardship and penury and stunts economic growth. Plans to bring forward the timetable to raise the state pension age will not be possible unless this changes.

“Despite the government’s messaging about the need to get older people back into work in the run-up to the budget, the policies outlined by the Chancellor are very light on specific support tailored for the needs of 50+ workers. If we are going to see meaningful change for older workers, then we need to ensure these new programmes have strategies to improve outcomes for older workers built in. They cannot be allowed to replicate the failings of initiatives which deliver poorer outcomes the older people are, such as the Work and Health Programme which is helping just 15% of people aged 60+ to find work.

“The scrapping of the Work Capability Assessment creates opportunities for more people to get help and access work. But the reformed service has to connect with individuals who are not currently engaged with employment support - offering an incentive to engage, not pushing more people into a punitive regime.

“If the government is serious about delivering truly transformative change for the economy and older workers, helping us all to live longer working lives in the future, we need programmes that specifically address the barriers currently locking many out from employment such as rigid working practices and negative attitudes towards older workers.

“We would like to see the new Universal Support Scheme incorporating a national programme of employment support tailored for older workers. Only then will the Chancellor create the back-to-work movement for older workers.”