Pensions Minister Steve Webb has today launched an action plan to help older workers stay in the workplace longer.

The government’s new measures to respond to an increasing life expectancy are set out in Fuller Working Lives – a frame work for action, which was published today.

According to the framework, the economy could have been boosted by £18bn in 2013 if the employment gap between people in their 40s and those aged 50 to state pension age was halved.

DWP figures state the UK employment rate for 55-64 year olds is around 60% and growing. The recent improvement was described as “relatively modest” compared to many other nations as several countries achieve employment rates of 70% or above.

Among plans mentioned in the framework, Webb highlighted the need for a new guidance toolkit for employers, which seeks to “develop additional accredited guidance and toolkits where gaps have been identified”.

“Information will focus on the business benefits of employing older workers, and on what works in terms of healthy workplaces in different sectors and occupations,” the plan said.

This comes after the framework suggested early labour market exit can be “damaging” for business and keeping older people in work will be “crucial” to meet labour demand.

The Minister said it is “great news” that life expectancy has increased and extra years of healthy life are being gained, but it is something as a society and economy “we need to respond to”.

“The business case is compelling and the research we are launching today sets out clearly the advantages for individuals, employers and the state,” Webb said.

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