The Social Security Advisory Committee (SSAC) has initiated a comprehensive inquiry into the effectiveness of the social security system for individuals in their sixties. This comes as the State Pension age continues to increase, meaning more people are remaining in the 'working-age' category for longer and are subject to its associated benefit conditions.
For many years, the concept of an 'ageing society' has been a prominent discussion point in the UK, driven by higher life expectancy. While the abolition of default retirement ages in 2011 and the ongoing reviews of the State Pension qualifying age have received considerable attention, less focus has been placed on how the broader social security framework adapts to an older claimant population. Historically, women and lower-income men with means-tested entitlements transitioned out of 'working age' at 60, but this age is now 66 and is set to rise further. The significant demographic shift of the 1960s birth cohort moving into their sixties is intensifying these implications.
A key focus of the SSAC's inquiry is to examine whether the current benefit system rules and employment support mechanisms adequately serve those in their sixties. Many older individuals are now subject to strict work-search requirements, a condition for receiving Universal Credit, unless specific circumstances apply. The Committee, leveraging its expertise and access to the Department for Work and Pensions and Jobcentre network, is uniquely positioned to address these questions.
Initial investigations by the SSAC have identified several potential barriers to employment for older people. These include age-related health conditions, significant caring responsibilities – which can encompass grandparenting – and a reluctance among some employers to hire older workers. This reluctance may stem from prejudice or concerns about the return on investment for training, particularly with new employers who might be less inclined to make reasonable adjustments compared to existing employers with long-standing staff. Consequently, the inquiry will not only assess support for older claimants seeking new employment but also evaluate how effectively the system helps them maintain existing connections with employers.
The Committee plans to develop a series of illustrative case studies, similar to its previous research on young people's benefit interactions. These will explore how working extra hours or securing any employment impacts the overall financial situation of 60-somethings under different circumstances, taking into account all benefit implications. The inquiry will also consider the varying rules for means-tested benefits for those deemed beyond 'working age', examining whether the system fully supports pensioners who wish to continue working. Furthermore, the SSAC will scrutinise Jobcentre practices, including the support offered to older claimants and non-claimants seeking employment, and the flexibility provided for part-time or variable hours, which could be crucial for older workers facing barriers.
To gain a comprehensive understanding, the SSAC is collaborating closely with officials and Jobcentre staff. Additionally, a series of roundtable discussions are being held with a diverse range of stakeholders, including employers, charities, trade unions, academics, and other civil society organisations. These discussions are proving invaluable in shedding light on the current system's strengths and weaknesses, and in generating potential solutions to enhance support for older individuals in the workforce.