More targeted cuts in National Insurance will help employers and older workers.
[Penrith, 6th March, 2024]— Workers over 50 are the fastest growing age demographic of the UK labour market, growing by just over 4 million in the period 1992 to 2022, yet 302,000 workers aged 50 to 64 are the most likely to be economically inactive. Employers play a key role in creating employment opportunities for older workers with a benefit for society, individuals, and the British economy.
Today’s announcement by the Chancellor of the Exchequer to reduce National Insurance by 2p will benefit workers and the self-employed of all ages. However, if we want to encourage older workers back to work, giving them the opportunity to earn a living and save for the future, we also need to consider targeted reductions in the employer’s national insurance contribution that incentivise them to employ workers over 50.
“At ProAge we were very pleased to put our representations for Employer NIC cuts to the Chair of the Treasury Select Committee and for Harriett Baldwin MP to take our views very seriously in putting them to the Chancellor. As people over 50 represent 30% of employees and 48% of the self-employed, we welcome the amends to the NIC cuts and agree with the OBR estimates that this will see many thousands of people, especially older workers, looking to maximise the opportunities this presents. Although Employer NIC cuts were not part of today’s package which is where we see the greatest benefits in encouraging employers to take on mature employees and benefit fully from mixed age diverse workforces, we see this as an area for future opportunity and would like to see this forming part of upcoming statements from the government – of whatever colour as we consider how best to tackle urgent skills shortages in future.” Says Mike Mansfield CEO, ProAge
