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Reading: Jobless DWP benefit claimants aged 50-plus reaches new high – Birmingham Live
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Market Analysis

Jobless DWP benefit claimants aged 50-plus reaches new high – Birmingham Live

Last updated: August 10, 2025 8:45 pm
Published: 7 months ago
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The number of jobless benefit claimants aged 50 or older has reached a new high.

According to a new study, those over 50 who are claiming benefits from the Department for Work and Pensions ( DWP ) has hit almost two million for the first time.

A report by the Centre for Social Justice (CSJ) indicate that those who are unemployed and claiming benefits has jumped by 600,000 among 50 to 64-year-olds since February 2020.

It reached a total of 1.99 million in November 2024.

This has been attributed in part to a rise of more than a fifth (21 per cent) in the number of health-related exits from the labour market among older people owing to long-term sickness since 2015.

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According to the research, 93 per cent of the 2.7 million who received fit notes in the final quarter of 2024/25 were advised as ‘not fit for work’.

Just seven per cent were given the ‘may be fit for work’ option.

More than two in five (43 per cent) were issued notes for five weeks or longer – a rise on the previous year’s statistics.

The think tank warned the data ‘reflects a system that defaults to full sickness absence’.

It said that GPs – who are the main issuers of fit notes – often lack time and training to assess reasonable adjustments which may help a patient stay in work.

The CSJ recommended the Government establish a new National Work and Health Service to encourage the retention of over 50s in the workplace.

Researchers believe this would take pressure off GPs and provide better support with workplace adjustments.

They say it will reduce unnecessary workforce dropout.

The report also recommended the introduction of age-specific employment targets for workers in their 50s and 60s, along with strengthened occupational health services and additional specialised careers guidance.

Mercy Muroki, development director at the CSJ, said: “Workers over 50 bring decades of skills, insight, and experience.

“Even a modest rise in employment among economically inactive people over 50 could generate billions in tax revenue and welfare savings.

“By adopting the measures set out in this report, the Government can improve labour market outcomes for older people, reduce welfare dependency, and build a more inclusive, resilient labour market.”

The analysis by the CSJ highlighted the disproportionate impact of the pandemic on older workers, which accelerated the decline which was already occurring before Covid.

Economic inactivity among 50 to 64-year-olds reached 25.9 per cent in May 2025, more than double the 11.5 per cent for 35 to 49-year-olds.

The think tank said this represented one of the major obstacles to economic recovery.

Those aged 50 to 64 years old account for almost a third of the total increase in economic inactivity among the working age population since Covid – equivalent to a rise of about 185,000 of those who are not in work and not looking for work.

Economic inactivity among those aged 35 to 49 has decreased over the same period.

The number of economically inactive older people who say they would like to work has declined from 19 per cent in 2015 to just 14 per cent in 2024, the report indicated.

Of those willing to work, the study suggested that most are not actively seeking employment, highlighting a critical yet overlooked pool of potential labour market participants.

In July, the Department of Health and Social Care and the Department for Work and Pensions announced The WorkWell Primary Care Innovation Fund would provide a share of £1.5 million, £100,000 each to 15 pilot sites.

The programme is expected to support up to 56,000 disabled people and people with health conditions into work by spring 2026.

Labour MP Carolyn Harris, vice chairwoman of the CSJ, said the UK economy was facing a ‘midlife crisis’.

She said: “Health Secretary Wes Streeting is championing the right ideas with his WorkWell scheme but the Government should now mature the pilot into a National Work and Health Service, helping to stem the flow of the 300,000 or so who exit work every year due to sickness, and ensuring people get the support they need.”

Read more on Birmingham Mail

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