Since December 2019 the number of people aged 50-64 who are out of work and not seeking it has gone up by just over 300,000. The Treasury is alarmed enough by this that it is reported to have told the Times it was considering trying to tempt over-50s back into work with higher tax allowances or even an exemption from income tax.
It’s possible to make an economic and political case for doing this. Economically, we all benefit if labour becomes less scarce. There are more people to provide the things we want. Output would grow, which the government desperately wants to happen to improve its chances at the next general election. Older people are more likely to vote Tory as well, so tax breaks for them is a way of shoring up the party’s core vote. And if British people do not return to the labour market the UK will need more inward migration, which still agitates Tory members even if society as a whole is more relaxed about it than ten years ago.
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