Movehut recently revealed the number of people receiving state pensions who, due to economic difficulties, are choosing to remain active in commercial property workplaces. In a time where young people are struggling to gain employment and unemployment frequently hits record highs, there is some debate about whether experienced workers remaining in jobs is really a positive step towards rebuilding Britain’s devastated economy.
However, Conservative Member of Parliament for Suffolk Coastal, Therese Coffey, has suggested a way in which employed pensioners may boost employability while being allowed to remain in their commercial property jobs – by contributing National Insurance to allow low paid workers a National Insurance holiday.
Under the proposals, pension age workers would continue to contribute National Insurance payments to cover the deficit for commercial property businesses, which would then be eligible for a tax break when able to prove they are using the money to create employment for young workers eager to step onto the career ladder. The extra revenue could also be used to cover the National Insurance costs for a number of Britain’s lowest paid workers, many of whom currently struggle to cover the costs of running their homes and buy food and clothing from retail commercial properties.
Currently, those who continue to work in commercial properties past the age of retirement are not required to pay National Insurance on their earnings. However, should the proposals be put in place as a legal obligation, the Treasury estimates that this could lead to up to £2 billion being raised from working pensioners’ National Insurance contributions.
The savings would primarily be passed on to young workers under the age of 25 who earn less than £20,000 per annum in their commercial property job. To put the savings in perspective, a National Insurance break for a 21 year old would amount to £675 per year, while their employer would save more than £800 – money which could be redistributed by the commercial property business into creating jobs for more young people.
Ms Coffey said; “For those who choose to continue working they are doing the same job and then get a pay rise when they turn 65.
“One of the things I have found from talking to employers is that they are not so keen to take on young people and this would make it more attractive. When they take on somebody with 30 years of experience they are already really productive.
“I think in this challenging climate they are more likely to go for somebody with experience rather than somebody who is fresh.”
Ms Coffey presented her findings as part of a report entitled “Policy Bites”, which suggested seven proposals which would allow the Government to aid struggling commercial property businesses and allow UK companies to expand. The report was published by the Free Enterprise Group, which is made up of 39 Conservative MPs who show particular interest in the Government’s methods of stimulating the UK economy.
Other proposals in the report included the building of a third and fourth runway at London commercial property Heathrow Airport, to allow for greater international communication and export between UK and foreign commercial property businesses.
Do you think this plan would be viable and encourage bosses to hire greater numbers of young people? Or do you believe that pension age workers should not have to contribute further National Insurance simply for choosing to continue working?
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