Government encouraging workers over 50 to end early retirement

Older people who have given up work could be offered what is being dubbed a "midlife MoT" to entice them back into employment, The Times reports.

The paper says the 'MoT' would assess finances and opportunities for work.

This plan is being suggested as a recent House of Lords committee claimed that since the pandemic there has been a wave of people taking early retirement, which has caused a labour shortage.

Economic inactivity has increased by 565,000 people since the start of the pandemic, according to the analysis.

'Midlife MoTs' could be offered to middle-aged people who have retired (Image: PA)

Lord Bridges of Headley, chair of the committee, said to the PA News Agency: “There are a number of reasons why people left the workforce but as we kept looking it became clear that retirement was the biggest factor, the biggest change from the start of the pandemic.

“We can’t hypothesise too much, but one potential explanation is that people experimented with different lifestyles during the pandemic – they were forced to stay at home or work fewer hours – and then changed their working lives as a result, even when the pandemic restrictions changed back.”

READ MORE: Early retirements main cause of labour shortages, Lords claim

He added that these findings were "bleak" and that the Government needed to do more to help address labour shortages.

According to The Times, a source close to the work and pensions secretary Mel Stride said he is also keen to find innovative ways to address economic inactivity.

He confirmed that he met Prime Minister Rishi Sunak to discuss plans before the Christmas break.

A public information campaign focusing on people over the age of 50 could begin as early as spring.

The Department for Work and Pensions said at the time of the House of Lord committee report being released that they would factor it into any workforce participation plans.