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\t\tWork and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system\t<\/p>\n\t\t\tSunday 10 August 2025 2:13 pm
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\t\t\tSunday 10 August 2025 2:18 pm\n\t<\/p>\n
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\t\tWork and Pensions Secretary Liz Kendall is in charge of reforming the state pension and benefits system\t<\/p>\n
The economy faces a \u201cmidlife crisis\u201d after a fresh study revealed the number of jobless benefit claimants aged 50 or older has reached nearly two million for the first time.<\/p>\n
A new report from the Centre for Social Justice (CSJ<\/a>) has shown the number of 50 to 64-year-olds who are out of work and claiming benefits<\/a> has surged by 600,000 to 1.99 million since February 2020.<\/p>\n The research showed a 21 per cent uptick since 2015 in older individuals exiting the workforce due to health conditions. <\/p>\n But the report outlined that GPs had lacked the time and resources to provide assessments on adjustments that could be made in order for individuals to stay in work.<\/p>\n It comes as 93 per cent of the 2.7 million receiving fit notes in the final quarter of 2024\/25 were labelled \u201cnot fit for work\u201d. Just seven per cent were handed \u201cmay be fit for work\u201d. <\/p>\n The CSJ said the figures reflected a system that \u201cdefaults to full sickness absence\u201d. <\/p>\n Benefits reforms could hand billions to Treasury<\/p>\n Labour MP Carolyn Harris, vice chair of the CSJ, said: \u201cAs this timely report shows, the UK economy is facing a \u2018midlife crisis\u2019.\u201d<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tBenefits claimants take home more than minimum wage workers<\/a><\/p>\n Harris called for the government to pilot a \u201cNational Work and Health Service\u201d in a bid to help \u201cstem the flow\u201d of the near 300,000 exiting the Labour market due to sickness.<\/p>\n The report said the new service would help reduce unnecessary workforce drop-out for older workers and \u201ckeep them meaningfully engaged with employment, even if at a reduced level\u201d.<\/p>\n It also recommended age-specialist careers guidance through the new National Jobs and Careers Service.<\/p>\n Mercy Muroki, development director at the CSJ, said: \u201cBy adopting the measures set out in this report, the Government can improve labour market outcomes for older people, reduce welfare dependency, and build a more inclusive, resilient labour market.\u201d<\/p>\n She added: \u201cEven a modest rise in employment among economically inactive people over 50 could generate billions in tax revenue and welfare savings.\u201d<\/p>\n The calls come after the Treasury faced a daunting warning from the National Institute of Economic and Social Research that Rachel Reeves would need to raise more than \u00a350bn <\/a>in fresh taxes to stay within her \u201ciron clad\u201d fiscal rules.<\/p>\n The Chancellor had hoped a string of welfare reforms would shed \u00a35bn<\/a> in spending but fierce backlash from party rebels led to a government row back.<\/a><\/p>\n \t\t\t\t\tRead more<\/p>\n