Over-50s could get tax breaks in bid to get them back into work – how you could be affected

OVER 50s could get tax breaks for returning to work after a career break.

Ministers are working on plans to try and get more people off benefits and back into the workplace.

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Around nine million people are thought to be economically inactive.

But there are around 1.3million job vacancies up for grabs, with thousands of firms unable to fill them.

But approximately 2.5million are on sick benefits.

Since the pandemic there has been huge increases in the number of people claiming out of work benefits – driven by increases in mental health conditions and long Covid.

DWP boss Mel Stride and Chancellor Jeremy Hunt are looking at ways to encourage people to take up jobs if they can – which would boost pay packets and the economy.

This morning No10 refused to rule out tax breaks for over 50s making a labour market comeback.

The Times reported the break could last up to a year, and could involve certain ages not paying income tax at al.

The plans are still being thrashed out by ministers, with an expected announcement before the spring budget.

Those on disability benefits could also continue receiving some form of help if they return back to the workplace, under the shake-up plans.

The help could be tapered off as people increase their hours.

The government wants to remove the “perverse incentive to prove how sick you are” and help people realise what work they can do.

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A health and disability white paper is expected in the next few weeks.

The DWP also is looking at whether to scrap separate assessment systems in favour of just one, to stop them competing with each other.

The Prime Minister last week said the Government is looking at a range of measures to tackle inactivity, adding: “We need to look at how our welfare system is operating and is it operating in the way that we would like to make sure that we are supporting and incentivising people who can be, to be in work.”

Meanwhile, Labour pledged to let sickness benefit claimants who want to work go straight back on the dole if they cannot do the job.

It means someone on illness or disability welfare can take employment without the fear of losing their funding if they later quit.

Shadow Work and Pensions Secretary Jonathan Ashworth says it would “derisk” the process for people who want to work.

This post first appeared on thesun.co.uk