What will you do if you lose your job?
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The Government has made it more difficult for people to lose their jobs because of their age, a new Government study has found.
The study, published by the Institute for Social and Economic Research (ISER), says the Government’s decision to give people a new retirement benefit of £16,000 to cover the costs of taking their job, which was introduced by the previous Labour Government, is making it harder for older workers to stay in the workforce.
“The Government is imposing a new rule on older workers who have already been in the job for more than three years,” said Pauline Cottrell, Senior Policy Analyst at ISER.
In the study, the Institute found that the Government was reducing the amount of support they provide to people aged over 55 who have been in a job for at least three years.
Currently, people can claim a new pension to cover costs of moving, moving out of the job and moving to a new job if they have not worked for three years or more.
This would be paid out over five years, depending on their age.
But the Government is reducing the allowance to cover those costs to £16k in the new rules.
A pensioner aged 55 would be entitled to a maximum of £24k in a new scheme and would not be able to claim a pension at all in a full-time job.
However, people over 65 would have their pension paid out at a lower rate than younger workers.
And if they were in a part-time position and had no pension at the end of the five-year period, they would not get a benefit.
People aged 65 and over who worked for the previous government would get £18k in pension relief from 2020.
They would be able, for example, to claim their pension for three more years, and also receive a pension payment if they are diagnosed with Alzheimer’s disease.
But, the Government has also reduced the amount that people can receive in a retirement benefit from £16.7k to £15.6k.
For example, people aged 65 or over would be eligible for a pension of £14.6, but would only receive a payment of £7.6.
These changes were introduced by then-Treasury Secretary Ken Clarke, who was Minister for Employment, in June 2020.
Under the new scheme, people would only be entitled, if they hold a job that provides the same pension as an equivalent job in their community, to receive a maximum benefit of a minimum of £18,000 per year.
If they were working in a different job, they only got a maximum amount of £15,600 per year and would be subject to the full-rate pension.
According to the report, people who had been working in the same job for less than three-and-a-half years would only have their benefits reduced by £6,600.
It also said the changes would mean a much smaller amount of income would be available for people in the pension scheme than in other schemes.
One in three people aged 55 and over would see a reduction in their pension, according to the study.
While older people will still receive the full benefit, those over 65 will be able only to receive £17,000 in a pension.
They would also not be eligible to claim the full pension until the age of 70.
Younger people are more likely to get a pension, and will also be able take advantage of the changes.
Under the current scheme, older people have to wait until they are 65 before they can receive the pension.
If they are working in another job, older workers would only get £14,000, whereas people under 65 would get a maximum pension of just over £11,000.
At the moment, younger people are eligible to take advantage, but the Government wants to see people over 50 receiving a maximum contribution of £25,000 when they retire.
With the changes, people 65 and older would receive a full pension for the first three years, which would be reduced to just over half a million pounds after three years of the scheme.
More: The Government says older workers will not be ‘wasted’ under the new pension schemeThe study also found that, of those in a work role who were over 65, a quarter were aged under 30 and only a third were aged 50 and over.
There were more than one in three workers aged 65 who were unemployed or working part-timers, compared to just one in five of those aged 25-34.
When it comes to younger workers, the study found that less than one-in-three were in the workplace full-timing, compared with more than half of those over 25-29.
Almost one-third of people aged 25 and over were not in work, compared, again, to just 1.7% of those under 25.
The Government has made it more difficult for people to lose their jobs because of their age, a new Government…