If Labour want to kickstart economic growth, it is vital that any reform of employment support includes specific focus on older workers
This week the government has outlined initial reforms to the Department for Work and Pensions in a bid to tackle growing levels of economic inactivity and welfare spending.
Labour front bencher Liz Kendall said “economic inactivity is holding Britain back” as the new government seeks to create more good jobs and tackle the root causes of worklessness.
This week the new Work and Pensions Secretary carried out her first public visit to see how JobCentre staff in Leeds support people with health conditions, and those aged 18-24 and over 50.
Following a manifesto promise, the party confirmed the Jobcentre Plus and the National Careers Service will be merged in an effort to both get more people into work and support people to find better paid jobs.
Labour has said a new so-called Youth Guarantee for 18-21 year-olds will see more opportunities for training, an apprenticeship or help to find work offered to all in this age category “to prevent young people becoming excluded from the world of work at a young age”.
It has also promised that more disabled people and those with health conditions will be supported to get into and remain in work “by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve”.
Responding to these announcements, 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.
“The minister is right to highlight the high numbers of economically inactive people in the working-age population – 40% of whom are 50 or older. And we agree it is hugely damaging that the UK is the only G7 country with employment not back to pre-pandemic levels. But more specifically 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.”
