Sector News

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

#100YearLife @AIGinsurance - National Insurance rates should be cut for employers hiring older jobseekers, @SMFthinktank has suggested

The Social Market Foundation said that ever-longer working lives make it more important to help people over 50 get back into work if they lose their jobs 

Tax cuts should be used to make older workers who lose their jobs and take part in new government skills training schemes cheaper to employ, the SMF said. 

Lower rates of employers’ National Insurance would make such workers more attractive to recruiters, the think-tank said in a new report ahead of the Budget in March.  

The idea is put forward in an SMF report based on a roundtable discussion with senior politicians, officials, business leaders and academics. 

The SMF, a cross-party think-tank, said that rising longevity and retirement ages will soon make the “50-year career” the norm for many people.  

Working for half a century will require more people to change careers and acquire new skills, but the SMF report found that Britain is poorly prepared for the 50-year career. 

Polling conducted as part of the SMF study found that less than four in ten people aged 35 to 54 say they are interested in changing careers. People in that age group may be less than halfway through their working lives and are very likely to have to change jobs more than once before retirement, the SMF warned.  

Such findings mean politicians should launch a public education campaign to make people aware of their likely future skills needs, the SMF said.  Its report was part of a project sponsored by AIG Life.

The SMF also proposed a significant overhaul of skills support for workers. The Government has proposed to spend £3 billion over this parliament on a new National Skills Fund, but the SMF said that plan was nowhere near ambitious enough. 

Ministers should learn from Singapore, which offers a “SkillsFuture Credit” subsidy for anyone carrying out an approved training scheme. The UK could learn from that by relaunching Individual Learning Accounts, abandoned in 2001 due to IT failures and fraud. 

For those workers over 50 who lose their jobs for “structural” reasons - for instance, because a factory closes or their company goes bust - and use the new Skills Fund to retrain, employer National Insurance Contributions should be reduced, the SMF said. 

This could help to incentivise employers to hire workers who may require training or who are approaching State Pension Age. The report noted that there is precedent for varying NICs by age - employers of workers under 21 do not have to pay Class 1 National Insurance, to encourage them to hire younger staff.  

The SMF also urged ministers to move ahead with implementing plans to offer a “lifelong learning loan allowance”, which could be used to fund higher technical and degree level education at any stage in an adult’s career.

This was proposed in the independent Augar Review last year, but has not yet been accepted by government. A member of the Augar Review team, Baroness Alison Wolf, is a former SMF trustee who now works in the No 10 Policy Unit. 

Kathryn Petrie, SMF Chief Economist said: 

On tax cuts: 

“People over 50 still have years to go before retirement and getting them back to work after unemployment should be a higher priority.  Making it cheaper to hire and employ them by cutting national insurance rates for them should be on the Budget agenda this year.”

“Someone who loses their job in their early 50s could have nearly 20 years of working life ahead of them. Policymakers should be looking at bolder options for helping make sure they can get back into work.”

On public education: 

“As life expectancy continues to rise, the number of years spent working is likely to increase. The 50-year career will become the norm. But our polling shows that many people aren’t aware of this change and aren’t thinking about how to make sure they have the skills they’ll need in future.” 

“As well as better skills provision, politicians need to start a national conversation about the implications of our longer lives.”

Key findings

  • Less than four in ten of those aged 35 to 54 are interested in changing careers, those in the lower end of this age bracket have at least thirty years remaining in the labour market
  • One in three of those aged 35 to 54 believe they would need additional training and qualifications in order to change careers.
  • Almost two-thirds (63%) of respondents had taken time out of the labour market during their working life (either voluntary or involuntary)
  • Three quarters (77%) of those who took time out the labour market were able to return to the same career / industry sector – however, one fifth (22%) of those who returned to the same career or industry were moved sideways or into a lower paying role.

The SMF’s 100 Year Life project was kindly supported by AIG Life, the UK life insurance arm of AIG.  The SMF, a registered charity, retains editorial independence over all its publications and discloses all its sources of funding.

Methodology: In research for the 100 Year Life project, Opinium conducted a nationally representative poll of 3,003 adults (who are not retired) between 16th and 23rd August 2019. Unemployment among people aged 50-64 is 2.7%.  Another 25.3% of the age group are classed as economically inactive.

Sponsored Video

Register, Login or Login with your Social Media account:


Advertisers

Upcoming FE Events

Advertiser Skyscrapers

Newsroom Activity

National Education Group has a new avatar. yesterday

To what extent are parents aware and responsible
for correcting their children's behaviour in this
cluster...

Latest Education News

Further Education News

The FE News Channel gives you the latest education news and updates on emerging education strategies and the #FutureofEducation and the #FutureofWork.

Providing trustworthy and positive Further Education news and views since 2003, we are a digital news channel with a mixture of written word articles, podcasts and videos. Our specialisation is providing you with a mixture of the latest education news, our stance is always positive, sector building and sharing different perspectives and views from thought leaders, to provide you with a think tank of new ideas and solutions to bring the education sector together and come up with new innovative solutions and ideas.

FE News publish exclusive peer to peer thought leadership articles from our feature writers, as well as user generated content across our network of over 3000 Newsrooms, offering multiple sources of the latest education news across the Education and Employability sectors.

FE News also broadcast live events, podcasts with leading experts and thought leaders, webinars, video interviews and Further Education news bulletins so you receive the latest developments in Skills News and across the Apprenticeship, Further Education and Employability sectors.

Every week FE News has over 200 articles and new pieces of content per week. We are a news channel providing the latest Further Education News, giving insight from multiple sources on the latest education policy developments, latest strategies, through to our thought leaders who provide blue sky thinking strategy, best practice and innovation to help look into the future developments for education and the future of work.

In Jan 2021, FE News had over 173,000 unique visitors according to Google Analytics and over 200 new pieces of news content every week, from thought leadership articles, to the latest education news via written word, podcasts, video to press releases from across the sector, putting us in the top 2,000 websites in the UK.

We thought it would be helpful to explain how we tier our latest education news content and how you can get involved and understand how you can read the latest daily Further Education news and how we structure our FE Week of content:

Main Features

Our main features are exclusive and are thought leadership articles and blue sky thinking with experts writing peer to peer news articles about the future of education and the future of work. The focus is solution led thought leadership, sharing best practice, innovation and emerging strategy. These are often articles about the future of education and the future of work, they often then create future education news articles. We limit our main features to a maximum of 20 per week, as they are often about new concepts and new thought processes. Our main features are also exclusive articles responding to the latest education news, maybe an insight from an expert into a policy announcement or response to an education think tank report or a white paper.

FE Voices

FE Voices was originally set up as a section on FE News to give a voice back to the sector. As we now have over 3,000 newsrooms and contributors, FE Voices are usually thought leadership articles, they don’t necessarily have to be exclusive, but usually are, they are slightly shorter than Main Features. FE Voices can include more mixed media with the Further Education News articles, such as embedded podcasts and videos. Our sector response articles asking for different comments and opinions to education policy announcements or responding to a report of white paper are usually held in the FE Voices section. If we have a live podcast in an evening or a radio show such as SkillsWorldLive radio show, the next morning we place the FE podcast recording in the FE Voices section.

Sector News

In sector news we have a blend of content from Press Releases, education resources, reports, education research, white papers from a range of contributors. We have a lot of positive education news articles from colleges, awarding organisations and Apprenticeship Training Providers, press releases from DfE to Think Tanks giving the overview of a report, through to helpful resources to help you with delivering education strategies to your learners and students.

Podcasts

We have a range of education podcasts on FE News, from hour long full production FE podcasts such as SkillsWorldLive in conjunction with the Federation of Awarding Bodies, to weekly podcasts from experts and thought leaders, providing advice and guidance to leaders. FE News also record podcasts at conferences and events, giving you one on one podcasts with education and skills experts on the latest strategies and developments.

We have over 150 education podcasts on FE News, ranging from EdTech podcasts with experts discussing Education 4.0 and how technology is complimenting and transforming education, to podcasts with experts discussing education research, the future of work, how to develop skills systems for jobs of the future to interviews with the Apprenticeship and Skills Minister.

We record our own exclusive FE News podcasts, work in conjunction with sector partners such as FAB to create weekly podcasts and daily education podcasts, through to working with sector leaders creating exclusive education news podcasts.

Education Video Interviews

FE News have over 700 FE Video interviews and have been recording education video interviews with experts for over 12 years. These are usually vox pop video interviews with experts across education and work, discussing blue sky thinking ideas and views about the future of education and work.

Events

FE News has a free events calendar to check out the latest conferences, webinars and events to keep up to date with the latest education news and strategies.

FE Newsrooms

The FE Newsroom is home to your content if you are a FE News contributor. It also help the audience develop relationship with either you as an individual or your organisation as they can click through and ‘box set’ consume all of your previous thought leadership articles, latest education news press releases, videos and education podcasts.

Do you want to contribute, share your ideas or vision or share a press release?

If you want to write a thought leadership article, share your ideas and vision for the future of education or the future of work, write a press release sharing the latest education news or contribute to a podcast, first of all you need to set up a FE Newsroom login (which is free): once the team have approved your newsroom (all content, newsrooms are all approved by a member of the FE News team- no robots are used in this process!), you can then start adding content (again all articles, videos and podcasts are all approved by the FE News editorial team before they go live on FE News). As all newsrooms and content are approved by the FE News team, there will be a slight delay on the team being able to review and approve content.

 RSS IconRSS Feed Selection Page