Get Britain back working: now for London's older workers

The Government’s White paper “Getting Britain Working” was heavily  trailed in the media. Work and Pensions Secretary Liz Kendall from the off in July visited job centres and saw they weren’t fit for purpose in helping people into work.

The political narrative on employment trumpets a sicknote Britain and increasing worklessness post pandemic – or now termed “economic inactivity.” Coupled with the  commitment to reduce the bloated welfare bill by £3 billion over five years means tough messages of cracking down on fraud and those who can work but don’t.

This well-intentioned and ambitious White Paper wants employment rates to leap to 80 per cent. It shakes up job centres rejuvenating them into a new national jobs, employment and careers service providing better advice. Joined up support particularly with Health is the watchword. And young people have a Youth Guarantee with access to education and training.

So, what’s in it for older workers hit during the pandemic with redundancies, a much tougher job market and with employment rates not recovered. The general measures may well help older workers with health issues, but  the jury is out on whether it adds up to an agenda for older workers.

It’s noteworthy that over two thirds of the increase in economic inactivity of  16- to 64-year-olds came from the over 50s. Of course, over 50s not working have been in the firing line since  Andrew Bailey the Bank of England’s Governor claimed in 2023 economic inactivity,  particularly affluent early retirees exiting work, was creating inflation, and putting undue pressure on interest rates and not helping with vacancies.

The Government is rightly targeting those who cite health problems as a barrier to them returning to work. There are 470,000 people aged 50-64 with a long-standing health condition not working but say they would like a job.

However, the deeper challenge is that health conditions and employment are down to structural inequalities in the labour market. Across London inactivity rates vary widely depending on where you live. You’re more likely to be inactive due to illness if you were in a low paid job and more likely if you’re an older woman and a BME older women.

But with economic inactive over 50s it wasn’t just ill health that made people leave employment but also other reasons – including retirement and caring responsibilities. Motives for becoming economically inactive may be very mixed and not one single cause and we need to know more.

What might be a better policy agenda for older workers is building on the White paper to tackle the underlying problems?

Better tailored employment support and advice to older workers is vital remembering that only one in ten older workers have back to work support from job centres as they weren’t on benefits and  many thinking  employment support on offer don’t cater for their needs.

There’s a risk of pushing unemployed or economically inactive over 50s into unsatisfactory and unrewarding jobs to meet targets, but which don’t help people’s lives. We tend to forget that many over 50s work in low quality, poorly paid and precarious jobs.

Older workers need the right designed jobs. Flexible working is welcomed by over 50s and one of the motives for returning to the workforce. This needs to become more of a reality accompanied by good job design. Its noteworthy that access to support and adjustments to cope with health issues remains uneven.

Having the right skills is key. Over 50s receive less training than their younger counterparts betraying ageist assumptions about capacity to learn and reaping  rewards from investment in training. With an ageing workforce and skills shortages unlocking the potential of older employees becomes more important.

More needs to be done to ensure older workers can remain in work. Retention is a problem for many employers. Indeed, London’s  Banking sector, not known for employing many over 60s, highlights the loss of experienced workers with core knowledge. This points to mid-career development strategies and proper occupational support including health. Job satisfaction is an indicator over time of how likely over 50s drop out of the workforce feeling undervalued and under supported.

Finally, the huge elephant in the room is ageism in employment, particularly  in recruitment. The age of 57 is defined now as the point at which you’re over the hill to get a job. London employers vary in whether they employ over 50s and even less so over 60s. At the GLA only 4.5 per cent of employees are aged over 60.

A welcome idea in the White Paper was a regional approach led by City mayors promising  both money and powers to develop tailored support. This throws the gauntlet down to the Mayor of London to develop that support which must also cater for the needs of London’s older workers.

Unfortunately, the Mayor’s track record on recognising  and championing older workers has been on the meagre side. The GLA’s Recovery Missions didn’t really acknowledge older workers needs. The long-awaited Age Friendly Action Plan for London has measures for older workers, but no hard objectives and less measurables. And the GLA’s shiny new Growth Plan needs to emphasise more  the contribution of older workers.

Above all we need a strategic approach to London’s older workers with more conspicuous leadership from the Mayor himself an older worker in highlighting and addressing issues affecting some of his older colleagues.

Tim Whitaker is an older age employment consultant and Trustee of Wise Age