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The economic system faces a “midlife disaster” after a recent research revealed the variety of jobless profit claimants aged 50 or older has reached almost two million for the primary time.
A brand new report from the Centre for Social Justice (CSJ) has proven the variety of 50 to 64-year-olds who’re out of labor and claiming advantages has surged by 600,000 to 1.99 million since February 2020.
The analysis confirmed a 21 per cent uptick since 2015 in older people exiting the workforce because of well being circumstances.
However the report outlined that GPs had lacked the time and sources to supply assessments on changes that might be made to ensure that people to remain in work.
It comes as 93 per cent of the two.7 million receiving match notes within the last quarter of 2024/25 had been labelled “not match for work”. Simply seven per cent had been handed “could also be match for work”.
The CSJ mentioned the figures mirrored a system that “defaults to full illness absence”.
Advantages reforms may hand billions to Treasury
Labour MP Carolyn Harris, vice chair of the CSJ, mentioned: “As this well timed report exhibits, the UK economic system is dealing with a ‘midlife disaster’.”
Harris known as for the federal government to pilot a “Nationwide Work and Well being Service” in a bid to assist “stem the circulation” of the close to 300,000 exiting the Labour market because of illness.
The report mentioned the brand new service would assist scale back pointless workforce drop-out for older staff and “maintain them meaningfully engaged with employment, even when at a diminished stage”.
It additionally really useful age-specialist careers steering by the brand new Nationwide Jobs and Careers Service.
Mercy Muroki, improvement director on the CSJ, mentioned: “By adopting the measures set out on this report, the Authorities can enhance labour market outcomes for older folks, scale back welfare dependency, and construct a extra inclusive, resilient labour market.”
She added: “Even a modest rise in employment amongst economically inactive folks over 50 may generate billions in tax income and welfare financial savings.”
The calls come after the Treasury confronted a frightening warning from the Nationwide Institute of Financial and Social Analysis that Rachel Reeves would wish to lift greater than £50bn in recent taxes to remain inside her “iron clad” fiscal guidelines.
The Chancellor had hoped a string of welfare reforms would shed £5bn in spending however fierce backlash from social gathering rebels led to a authorities row again.
