This was a low-key, pre-Brexit Budget, focused primarily on supporting families and improving the outlook for our young people. But there were also some interesting features for the 50 to retirement generation – both good and bad. New Middle Age takes a look.
- The main rate of Class 4 NICs for the self-employed will increase by 1% to 10%, with a further 1% increase in April 2019.
This change will increase national insurance costs for self-employed people with profits of more than £16,250, and will raise an average of 60p per week per self-employed person. This measure risks discouraging people from starting up their own business. While the over 50s are not the biggest group of entrepreneurs, businesses set up by them tend to be more sustainable. And the Government Fuller Working Lives agenda actively encourages entrepreneurship for the over 50s.
- £5 million committed to promoting returner programmes to the public and private sector, helping people back into employment after a career break.
This is a welcome measure and will hopefully help to expand the availability of the type of successful returner programmes already offered by flagship employers. These schemes are available to all but offer vital support to those in New Middle Age who are not working but would like to do so – fitting with New Middle Age’s aim of cross-generational approaches to the issues of age. However, the level of investment is very modest and if the government wants to make serious inroads on increasing economic participation amongst the over 50s, much more will need to be done.
- The Department for Education will invest up to £40m in pilots to test the effectiveness of different approaches to lifelong learning.
More funding and more approaches to lifelong learning are also welcome. The high economic productivity observed amongst the over 50s needs to be supported and developed. But consideration also needs to be given to the development of methods of assessment of lifelong learning programmes. Over 50s outside the workplace will need lifelong learning that delivers standardised and accredited qualifications, recognised by employers and in line with employer needs, which can deliver real job-readiness.
- Additional grant funding of £2 billion to social care in England over the next 3 years, allowing local authorities to commission new care packages, plus a Green Paper on the future financing of social care later this year.
For over 50s struggling to balance work with caring responsibilities, increased funding for social care for their elderly family members can only be welcome. However, given the ageing of our population, family care will inevitably remain a key part of the care equation. So we must continue to develop ways of properly supporting employees who want, and need to have time to care for family members.