Getting more over 50s into work
- If Chancellor wants to encourage more over 50s to keep working, he must address health issues rather than just pensions or benefits.
- Facilitating part-time or flexible working and improving NHS health outcomes are crucial elements to increase labour force participation of older people.
- Today’s employment figures show over 50s want to work but are not well enough.
- Five million over 50s may not be able to work full time into their 60s so higher pension allowances or tighter benefit sanctions are not the answer.
- Government must help overcome ageism, support retraining and apprenticeships for older people and extend occupational health services.
Today’s labour market figures show many older people want to work but are not well enough: Today’s employment figures show there are 1.7 million people currently not looking for work, but who say they would like a job. The figures show there are increasing numbers with long-term health conditions. Many of these people are over age 50 and could still work with improved help, retraining or more flexible working conditions. Nearly one million older people have left the workforce since Covid. https://www.ons.gov.uk/releases/uklabourmarketmarch2023
Focussing on changing pensions and benefits will not solve the health issues keeping over 50s away from work: The Chancellor is right to consider whether increasing pension allowances or tightening benefit assessments would result in higher numbers of over 50s re-entering or remaining in the workforce. However, the evidence clearly suggests this will not be sufficient. Millions of people are simply not well enough to keep working, especially full-time, due to health problems. Rising post-Covid NHS backlogs, as well as reduced services, are likely to mean more older people staying in poor health awaiting treatment. This will continue to keep them away from work and, if they have already left a job, will make it far harder to return to the labour force.
Chancellor is right that increasing labour force participation of over 50s can boost growth: With labour shortages across the economy, encouraging older people to keep working could make a significant difference to British prosperity. The analysis I published as Business Chamption for Older Workers showed that each extra year the over 50s stay in work could add one per cent to GDP. This should be about helping older people, not forcing them to work, by addressing their employment and health needs. https://www.gov.uk/government/publications/a-new-vision-for-older-workers-retain-retrain-recruit
There are significant differentials in health across the UK, with millions already in poor health in their 50s: Official statistics show a shocking picture of healthy life expectancy differences across the country. The lowest 10% of the population only stay healthy until around age 52, whereas the top 10% are still in good health after age 70. Indeed, the bottom 30% are already in poor health in their 50s, 40% only stay healthy till age 61 for men and 62 for women and 60% of the population do not stay in good health to age 66 – which is the current state pension age. See Table below:
Deciles of healthy life expectancy – years in good health, ONS for 2018-2020
| Decile | Men Years in good health |
Women Years in good health |
| 1 | 52.3 | 51.9 |
| 2. | 56.4 | 56.8 |
| 3 | 58.4 | 59.6 |
| 4. | 61.1 | 62.0 |
| 5. | 64.1 | 64.2 |
| 6. | 65.1 | 65.1 |
| 7. | 65.9 | 67.3 |
| 8 | 67.3 | 68.5 |
| 9. | 68.5 | 69.5 |
| 10. | 70.5 | 70.7 |
More than 5 million people are no longer healthy after their early 60s: There are 13.17 million people age 50-64. ( https://www.statista.com/statistics/734726/uk-population-by-age-group/ ). So if 10% are not well beyond age 52, that is 1.3million people. 20% not well after their mid-50s means 2.6million people will have health problems that could interfere with their ability to keep working. In fact, over 5 million citizens (40% of people) are not in good health after their early 60s and have health issues that could keep them out of the labour market. Just increasing pension allowances or tightening benefit sanctions is unlikely to be the right way to help all these older people to stay economically active.
New thinking is needed to overcome ageism, improve retraining, provide apprenticeships for older people, extend occupational health services and encourage part-time work: Encouraging, forcing or helping older people to work requires a number of interventions, alongside pensions or benefits. There is still too much ageism in the labour market, with employers often overlooking older job applicants, or failing to offer training to the over-50s. Government training programmes and apprenticeships for older people will also be important to help older people acquire the skills needed by employers. Occupational health services should be expanded to support those in poor health to stay in the labour force, with a focus on what work people can do, rather than what they can’t do. A period of part-time work and flexible working opportunities, including remote working, for those caring for loved ones would also help older people to keep working.
This can be a win-win, improving outcomes for individuals, employers and the wider economy: By increasing the labour force participation of over-50s, older people, employers, the economy and society can benefit. The over-50s themselves will benefit from higher lifetime incomes and better pensions. Employers will benefit from an expanded labour supply and keeping older workers’ valuable experience and loyalty. The economy will benefit from higher productive potential and society can benefit from greater individual and collective resources. The Chancellor is right in his aim of increasing the numbers of over-50s who can keep working, but he must also adopt the appropriate policy reforms to make this a reality.