Jeremy Hunt is working on a “back-to-work Budget” in response to concerns about a potential pensions crisis caused by the large number of people aged 50-64 who have left the workforce since the pandemic began.
Jeremy Hunt is planning a “back-to-work Budget” amid concerns about a pensions crisis caused by an ageing population.
Since the pandemic began, nearly 400,000 people aged 50 to 64 have left the labour force.
However, ministers are concerned that many people have not saved enough in their pension pots to avoid poverty later in life.
“Getting people back to work is a key theme for the Budget,” a Treasury source said.
“Economic inactivity is the main domestic driver of inflation and the quickest way to boost growth.”
“People have a tendency to underestimate how long they will live,” said another government source. If they are in their 50s, they frequently fail to consider that they may only have 30 or 40 years left.”
“Finding ways for them to return to work, even if only part-time, will benefit both them and employers.”
Ministers hope to encourage employers to provide more flexible working hours so that older employees can take time off if they are ill.
They are looking at ways people with caring responsibilities, such as those looking after elderly parents, could work one day a week at a care home to relieve staff shortages.