General Election Series: Making a (huge) contribution

440x210_older_workers_Mario

This week’s blog from our General Election Series highlights the significant role older people play in society. Our ambition for the next Parliament is a world where everyone can participate in society and be valued for their contribution. 

Older people make a huge contribution to society, going well beyond what is widely recognised. Age UK has previously estimated that all the work, caring and volunteering done by the over 65s adds up to a huge contribution of £61 billion to the economy.

But it’s about far more than just the hard economic value – being able to take an active part in society can make a huge difference to the lives of older people themselves, their friends and relatives, and everyone else too.

It is therefore extremely important that this contribution is fully recognised, and to make sure that barriers preventing people engaging in their community, accessing local services or going online, are tackled, so that everyone who chooses to do so can participate. Continue reading “General Election Series: Making a (huge) contribution”

Age UK’s Economic Tracker: many in their early 50s fear losing their home

Last week Age UK launched the second edition of its Economic Tracker . This addition includes the result of the first wave of a survey we have developed to track older peoples’ views on the economy and their financial situation.

It received quite a lot of coverage in the media, particularly because of the startling statistic the nearly a quarter of people in their early 50s were worried about losing their home as a result of falling behind with mortgage repayments. Like other age groups many older people are suffering a fall in income in the current period of austerity and this is having an impact on their well-being.

  • Over three million people aged 50+ are very worried about the cost of living. This is in the context of rapidly increasing prices for some essential items, especially utilities, which we know have a significant impact on older people’s finances.
  • Only thirty-eight per cent of 50+ say the future looks good for them
  • 35% feel worse off financially compared to last year (see chart below)Pensioner income

Since our first edition, the UK economy and economic policy have given us food for thought. There are concerns, disappointments, and one or two silver linings. As our polling data suggests the economic situation is particularly worrying for many of those approaching retirement, tomorrow’s pensioners, who find it more difficult to find a job following redundancy. Our analysis has found that older workers are more likely to be made redundant when compared to those aged between 24 – 49. This translates into higher proportions of older unemployed workers being out of work for longer. Forty-seven per cent of unemployed people aged 50 – 64 have been out of work for 12 months or more compared to thirty-seven per cent of people aged between 25 and 49. The situation of older people is not as bad as those between 16 – 24, but it is important to highlight that all ages are struggling in these tough economic times.

Quite rightly there is a lot of attention on the young unemployed at the moment, but we must ensure that those over 50 are not forgotten. More can be done by the Government and employers to recognise the value of workers over 50 (the experience and skills that come with a longer working life), provide more training and learning for those in later life, and do more to eliminate the ageism that too often occurs in workplaces.

Read more about the impact of the economy on the financial well-being of older people 

Find out what benefits you are entitled to 

Guest blog – Universal Credit: a missed opportunity to help older workers

This blog was contributed by Giselle Cory, Senior Research and Policy Analyst at the Resolution Foundation.

440x210_older-blck-lady

We know that many people want to work into older age – yet many do not. So what stops them? For some, caring for family or friends can make paid work near impossible.

For others, their own poor health can be a barrier. And for families on low incomes, it may be that work simply doesn’t pay enough to warrant continuing. This can lead to trouble for families who don’t have the savings they need to maintain decent living standards into retirement.

Universal Credit (UC) the government’s flagship welfare reform, could address some of these barriers. For example, under UC low income households will receive an income boost designed to make work pay.

This system could be powerful in ensuring older people have the incentives they need to remain in work. Yet a new report from the Resolution Foundation shows that while UC offers some benefits to older workers, it also misses an opportunity to raise older people’s incentives to stay in a job, or return to work. Without these incentives, low paid work simply does not add up.

Continue reading “Guest blog – Universal Credit: a missed opportunity to help older workers”

Making the Work Programme work for older jobseekers

It has been widely reported that that the Government’s flagship back-to-work scheme, the Work Programme, was failing to help the unemployed back into work and was accused by the Labour Party of being ‘worse than doing nothing’. While we don’t agree with this view, it’s clear the Programme has had some teething problems, particularly for the over 55s involved.

To quickly re-cap, the Work Programme is a major policy costing between £3 and £5 billion over five years, aimed primarily at the long-term unemployed. It uses private companies (‘contractors’) to help people return to work. And to clarify a common misunderstanding, it is not the same as the different but much talked about scheme where jobseekers do unpaid work experience at a business or other organisation!

NOT WORKING FOR OLDER JOBSEEKERS

Age UK has now had a detailed look at the results by age group to find out how successful it was for older jobseekers and  published a briefing.

While the Work Programme came in below expectations for everyone, it is even worse for the over 55s (see chart below. This shows the proportion of people sent on to the Work Programme who entered and remained in a job for at least three months).

The over-55s suffer a drop in successful job outcomes of nearly 30 per cent compared to the average for the under-55s (interestingly, the 50-54 age group have the same outcomes as 45-49s). The age profile of the job success rate is shown below.

This is a huge shortfall and represents a huge problem because the Work Programme appears to be failing to tackle the barriers faced by older jobseekers – it is simply not offering sufficient support.

job-outcome-chart

OVER 55s STRUGGLING TO FIND WORK

For anyone who loses their job once over the age of 50, it can be very difficult to move back into work. So it would be expected that the Work Programme would be less successful for older jobseekers, right? Well yes, and no.

Because the Work Programme is a labour market tool designed to improve job outcomes, it’s possible to change how it operates. Doing so could correct the natural imbalances found within the labour market which almost always harm the prospects of disadvantaged groups, including older jobseekers.

Our briefingrecommends several ways of changing the Work Programme without hampering contractors’ freedom to operate as they choose.
This could be by paying contractors more to place over 55s into jobs or by moving people to the Work Programme after six months unemployment rather than 12 – giving the right support earlier can help, although ‘right’ is the key word here. Measures such as these could make all the difference.

But it seems clear that if nothing changes, older jobseekers will continue to find themselves cut out of the workforce, often permanently, while being expected to wait longer before being able to draw their state pension.

Read  the full Age UK briefing ‘The Work Programme and older jobseekers’

Find out more about Work and Learning on the Age UK website