“Fuller Working Lives: A Framework for Action”

Monday 16th June 2014 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

On Friday 13 June, the Government published “Fuller Working Lives—A Framework for Action”. This follows a commitment set out in the Government response to the House of Lords Select Committee on Public Service and Demographic Change report of Session 2012-13: “Ready for Ageing?”

Around 2.9 million people aged between 50 and state pension age are currently out of work and the effects of early labour market exit can be catastrophic for an individual, particularly in terms of their ultimate retirement income. In addition to the sudden drop in income and possibly finding themselves reliant on working age benefits, individuals also lose the benefits of workplace pension provision. There can also be negative effects for health and wider well-being when an individual leaves the labour market in an unplanned way.

The framework for action sets out the business case for retaining and recruiting older workers at the individual, business and societal-level. It also draws together the important steps that the Government are already taking which will promote fuller working lives.

In addition, we announced:

that DWP is working with local enterprise partnerships to encourage them to focus on the issue of fuller working lives in their local area;

that DWP, alongside Department of Health and Government Equalities Office, are launching a two-year pilot on what works to support carers to remain in employment;

a pilot with Jobcentre Plus on employment support for carers;

that we will develop a new guidance toolkit for employers which will build on the existing Age Positive employer guidance; and

we will also shortly be confirming the appointment of an older workers business champion.

We know that once out of work, older people are more likely to become long-term unemployed or inactive and it is for that reason that Government are particularly focused on what we can do to help older workers retain their jobs in the first place. In particular, carers, disabled people, those with health conditions and those made redundant are at risk of permanently leaving the labour market.

Over the decade to 2022, population projections suggest there will be 700,000 fewer people in the UK aged 16-49, but 3.7 million more aged 50 to state pension age. By 2020 over 50s will comprise almost one third of the working-age population and we simply cannot afford to ignore older workers. We also know that GDP could have been £18 billion higher in 2013 if the employment gap between people in their 40s and those aged 50 to state pension age was halved.

A fuller working life is about giving individuals the chance to increase their financial security in later life. Sometimes this might mean a change of job or a different working pattern that is more suitable to their lifestyle needs, or support to manage a health condition or disability. To help people to continue working the Government have abolished the default retirement age meaning most people can now retire when the time is right for them. Enabling older people who can work to stay in work is not only critical to the economy and pensions sustainability, but also to the financial, health and social well-being of individuals.

The “Fuller Working Lives—Framework for Action” can be found at: www.gov.uk/government/publications/fuller-working-lives-a-framework-for-action.

The supporting “Background Evidence” document which sets out the analysis that has informed the development of the framework for action can be found at: www.gov.uk/government/publications/fuller- working-lives-background-evidence.

I have placed a copy of “Fuller Working Lives—A Framework for Action” and “Fuller Working Lives—Background Evidence” in the House Libraries.