The Centre for Ageing Better reports that narrowing the employment age gap could contribute an additional £9 billion annually to the UK economy.
The 50+ Employment Commitment
The Centre for Ageing Better has developed a "50+ Employment Commitment" urging political parties to commit to a brining the employment rate for people aged 50-64 above 75% and to 12% for those aged 60+ by 2030.
Their analysis suggests that this could generate an extra £1.6 billion in tax and national insurance contributions per year.
The employment age gap
Emily Andrews, deputy director for work at the Centre for Ageing Better highlights that the pandemic halted two decades of progress in improving the employment rate for older people. While employment rates for those aged 35-49 have fully recovered, the employment rate for those aged 50-64 has been slower to bounce back. This has resulted in an employment gap of 14 percentage points between the two age groups.
Tony Wilson, director at the Institute for Employment Studies, notes that 75% of employment growth since the start of the century has been among workers aged 50 and over. However, for the first time in 30 years, employment growth in this age group has stalled.
A call for action
He stresses that while the 75% employment rate target seems ambitious, it is essential. Currently, the UK ranks 20th in Europe for employment among older people, whereas about 12 countries have already achieved the 75% mark.
With the state pension age set to increase to 67 by the end of the next parliament, the report underscores the need to take immediate action to restore the progress made before the pandemic and ensure employment growth across all age groups.
The "Six Pillars of the 50+ Employment Commitment"
The 50+ Employment Commitment outlines the following six measures the next government should take to achieve the proposed target:
Improve employment support for those between 50 and 64 to match that of people in their 40s.
Boost investment in employment support for those in their 50s and 60s, with targeted support for those aged 50+ and unemployed.
Deliver a campaign to promote the value of good work for people in their 50s and 60s.
Create more opportunities for people to upskill and reskill by expanding mid-life review pilots.
Consult on the introduction of paid carer's leave and strengthen existing legislation on unpaid carer's leave and flexible work.
Review the Department for Work and Pensions' approach to employment and benefits for people in their 60s.
By 2030, there will be 1.2 million more people aged 50 to 64, compared to just an additional 500,000 people aged 15-29. Emily Andrews emphasises that "[t]he future of UK growth and productivity over the next parliament depends on mobilising the 50+ workforce".