How facts are reported often affects how people respond to them. So the changes made this month by the Office of National Statistics in how it reports age in its main labour market figures is a welcome development.
The most important change in the newly released August 2010 ONS labour market statistical bulletin relates to the way women are treated. Previously men and women over 50 were treated differently, with separate male 50-to-64 and female 50-to-59 female reporting categories. Women over 60 were considered as having retired from the labour market.
Now both men and women are reported in the same age bands, making direct comparison between the genders much easier. ONS will be doing this with historic data too, all the way back to 1971. For now though the most immediate side efect is to boost the 50-to-64 workless figures, since woman over 60 can now be included.
Source: AgeUK, based on ONS Labour Market figures
This change is entirely legitimate. It just recognises the reality of modern life: many women aged 60-to-64 need to earn a living.
Not only is the state pension they receive (from the age of 60 at the moment but rising in steps from next year to 65 by 2020) reduced if they had taken time out to look after a family, but family life no longer guarantees financial security in the way it was once asumed to do. Many older women nowadays find themselves suddenly on their own after the break up of a relationship. Divorce in its many modern forms still often leads to poverty, for one or both of the participants, just like it always has.
Going back to the newly released ONS figures, what can they tell us? The big picture is that there are now 3,605,000 people, men and women, aged 50-to-64 who are workless. That is over 32 per cent, or fractionally below one in three.
Long term unemployment amongst the over 50s is rising. Amongst the registered unemployed some six per cent of the over 50s have been out of work for over two years, whereas the figure for the under 50s is half that at three per cent.
The number of over 50s that have been out of work for over six months and claiming Jobseekers Allowance has risen by over 22,000 in the last twelve months.
This is borne out by PRIME’s experience. Nearly 20 per cent of the people who contact us for help have been workless for over two years.
So what needs to be done?
Here are five suggestions.
Top five ways of tackling older unemployment
1. Reduce the delay in getting older people onto back-to-work programmes. Jobcentre Plus still seems to operate a six-month rule for the over 50s. This means they won’t put you on New Deal programmes until you’ve been waiting on benefit for six months. The delay is bad for everyone, but is particularly damaging for those wishing to work their way off benefit by setting up a new business, since that’s going to take quite a while anyway.
2. Waive tuition fees for the sort of vocational courses that would enable workless older people to get back into work through self-employment. The state really is the only player capabe of having a positive impact here. Banks are very reluctant to lend to older people who need the money for a vocational course, or indeed any course. But you’re not going to be able to work as a locksmith, caterer or gas fitter without the qualificatons.
3. Get rid of poverty traps in the welfare system. Housing benefit is a particular problem for anyone thinking of starting a business, since it hard to find out when exactly the money will stop if you start working. People need to know when their business needs to be earning enough to replace the benefits they have coming in. Not knowing is a major disincentive to starting. If we want to encourage entrepreneurial behaviour ideally people need to know that if the worst happens and their business fails they can at least go back to the same level of welfare support they are on now.
4. Keep funding business support for new start-ups in the UK. The over-50s are an entrepreneurial group, but most of those who find themselves out of work haven’t been entrepreneurs all their lives. They need basic help, including business mentoring in the early stages and free business health checks in the first couple of years of trading.
5. Improve the visibility of existing help for out-of-work adults – and in particular those wishing to work their way off benefits. People who have been working all their lives don’t know all about the benefits system and often find it depressing. They will inevitably get to learn about Jobcentre Plus, but their chances of hearing about about other sources of free or low-cost practical help for self-employment (often sponsored by local councils) is much less.
So these are PRIME’s suggestions. All five could all be wrapped up in a New Enterprise Fund for the over 50s, since they do reflect many of the government’s stated aspirations for a “Work for Yourself” programme.
Hopefully the arrival of a new government on the scene representing not one but two political parties will mean a new openess to good ideas.
But what’s a bit depressng about the list above is that so many of the ideas closely echo recommendations we made back in 2004 in PRIME’s report “Towards a 50+ Enterprise Culture“.
PRIME does its bit on point 5 above with our online support directory, which lists of sources of reputable practical help around the UK that we know about. But considering it is often tax payers’ money that is ultimately paying for many of these schemes it’s surprising there’s no centrally maintained up-to-date list the public can refer to.
If you're new here, you may also want to visit our main web site PRIME Business Club where we provide lots of practical information to support clients.
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When my self employed career was finally ended in my mid 50s by illness I was left with debts from retraining etc to try and stay in work which could only be paid off by selling my home of many years. I had previously been steered by the Job Centre towards self employment, which of course offers none of the protection of employment. As a single, older woman I also did not have the income of a partner to help.
Living in rented accomodation I watched what little money left from my house sale pay for this. On three occasions I heard government officials describe grant schemes to help the self employed and when my health improved I enquired about these, to be told each time that they did not exist, and finally, that the government was “telling lies” – this from the Job Centre. I tried therefore to put a little money away to use towards getting back to work, in the absence of any other help, and, because the rest of my money had now gone, applied for help with housing benifit. I was told that before I could qualify for this, I must use my business start up money to live on, and when I did receive housing benefit – with no money now to get back to work – it was nowhere near enough to cover my rent, which is low for this area.
I had also enquired about permitted work while claiming incapacity benefit, to try to keep a roof over my head, and was told that I could only earn under £2, after which the amount I earned would be stopped, pound for pound, from my housing benefit. Although I knew I would not be able now to do it, I made enquiries about temporary work, something I had done with ease in the past, and despite not mentioning my illness, discovered that I could no longer get this, the only reason I could think of for this, given my past very good record, is my age.
Needless to say the continued stress of this situation has not helped my health at all, I have discussed my situation many times with benefit officers and others and always we come to the same conclusion, that people of my age in my situation are just not wanted or even recognised and that things will only get worse under this government, which seems to be made of incredibly ignorant, naive and hatefilled people.
The media does not recognise us either, we are the “skiving scroungers” living a life of luxury on benfits and are denied a voice to describe our real situations. Most recently there has been a furore over cutting child benefits to the rich, who wonder how on earth they will cope. I would just point out that before this happens, they will have to be earning over £40,000pa more than people in my situation are expected to survive on, and that unlike becoming chronically ill, having children is a lifestyle choice. I incidentally have no children, but no doubt my income tax has been used towards supporting those who do and are now attacking people such as myself.
I do not want to live on benefits, I just want to be earning enough not to have a panic attack everytime a bill comes through the door, but this possibility seems even further away now, and I deeply fear the future.