TAEN – The Age and Employment Network argues that while the proposals for welfare set out today by the Secretary of State for Work and Pensions, the Rt Hon Iain Duncan Smith MP, are a step in the right direction, there are still some gaps in creating a fairer and more open labour market for older workers.

Commenting on these announcements, Chris Ball, Chief Executive of TAEN says: “The announcements from the Secretary of State are timely and constructive proposals to ensure that a generation of workers is not unfairly excluded from the labour market.

“Measures such as removing the default retirement age and immediately placing older workers on welfare-to-work and providing immediate support, will go some way to ensuring that older people can continue in work, saving for retirement and contributing their skills and experience to the economy.

“We must also consider that fact that, in addition to the measures he’s announced or confirmed, there needs to be job opportunities for older workers. We really can’t have a programme for increasing retirement age unless everyone buys into it. This includes employers who are ageist in outlook or are so inflexible in the jobs they offer or the conditions that go with them so that they are hard to do in later life.

“The indications are that up to 500,000 jobs could be lost in the public sector, where one in three over-50s are employed, over the next few years. Also a quarter of over-50s are economically inactive: the hidden unemployed. Moreover, plans are in preparation to cut funding for job training schemes.

“Adding all this together, one can only see stormy water and rocky shores ahead for skipper IDS. Blaming the crew for mutiny and reluctance to work really won’t do a lot of good.”

TAEN was surprised and disappointed that the Secretary of State didn’t commit the new Government to its predecessors 80 per cent full employment aspiration.  “This needs to be an important part of the solution to the affordability of an ageing society,” commented Chris Ball.

“While today’s announcements are a step in the right direction, much more needs to be done to create a more comprehensive approach to keeping skilled, dedicated and capable workers in the economy.”