Workers over 50 encouraged to end early retirement

The government is considering plans to lure middle-aged retirees back into jobs to boost the economy.

Older people who have left work could be offered a so-called “midlife MoT” to lure them back into the labor market, the Times reports.

The paper said the MoT would assess finances and job opportunities.

It follows a recent House of Lords committee which found that a wave of early retirements in the wake of the pandemic has created huge labor shortages.

The report from the influential Economic Committee examined the rise in economic inactivity – the number of people unemployed or looking for work – and the rising job vacancies since 2020.

According to the analysis, economic activity has increased by 565,000 people since the pandemic began.

The report highlighted that retirement, rising levels of sickness, changes in migration and the UK’s aging population have all contributed to the current tightness of the labor market.

Latest figures from October showed nearly 2.5 million people are out of work due to long-term illness – adding to labor shortages

John Lewis boss said in August the company was facing an exodus of employees over 50 leaving the company during the Covid pandemic.

When the House of Lords report was released on Tuesday, Lord Bridges urged the Government to do more to support the economy.

In response, the Department for Works and Pensions said it had already expanded its Jobcentre Midlife MoT service.

Well, according to the Times, a source close to Secretary of Labor and Pensions Mel Stride said he is also keen to find innovative ways to combat economic inactivity.

He confirmed he met Prime Minister Rishi Sunak to discuss plans ahead of the Christmas break.

A public information campaign aimed at people over 50 could start as early as spring.

Speaking to the BBC, a Downing Street source said plans were being worked on to get older people back into the labor market, but added that nothing had been decided yet.