The number of people aged over 50 who are claiming benefits has hit almost two million for the first time ever.
There are now a record 1.99 million people aged between 50 and 64 who are out of work and claiming benefits.
This is up 600,000 (43 per cent) from the pre-covid figure of 1.4 million in March 2020.
Now, research by a think tank is thought to have found the reasons behind the rise.
According to the Centre for Social Justice (CSJ), which was set up by the former Tory leader and Welfare Secretary Sir Iain Duncan Smith, the increase is due to soaring numbers of older workers citing long-term sickness, which has increased by 21 per cent since 2015.
The decline in the number of economically active 50 to 64-year-olds can be blamed on a system that "defaults to full sickness absence", according to researchers.
Throughout the final quarter of 2024-25, 2.7 million "fit notes" were issued, a 2.8 per cent increase on the previous year.
HOUSE OF COMMONS
|The think tank which undertook the research was set up by former Tory leader Sir Iain Duncan Smith
Crucially, 93 per cent of these were advised as "not fit for work", compared to just seven per cent using the "may be fit for work" option.
The report from the CSJ said: "This reflects a system that defaults to full sickness absence rather than facilitating adjustments that might support retention.
"GPs - the main issuers of fit notes - often lack the time and training to assess what reasonable adjustments might help a patient stay in work."
According to the report, the increase in the number of older people not working was an "economic disaster and a missed opportunity."
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|The number of people aged over 50 who are claiming benefits has almost hit two million for the first time ever
It added: "Older workers bring decades of skills, insight, and experience.
"Their absence represents a serious depletion of the UK's human capital at a time when economic growth is urgently needed.
"Even a modest rise in employment among economically inactive people over 50 to 64 years old could generate billions in tax revenue and welfare savings."
The CSJ urged the Government to better support older workers who have manageable health conditions in work by overhauling the sick note system.
HOUSE OF COMMONS
|Labour MP Carolyn Harris said the study showed the economy was suffering a 'mid-life crisis'
The think tank suggested the establishment of a new National Work and Health Service which would take pressure off GPs and be able to provide better support for those needing workplace adjustments.
It also revealed fewer older people who are not working want to find a job, dropping from 19 per cent in 2015 to just 14 per cent last year.
Even then, most of those who do want to work are not actively searching for jobs.
Labour MP Carolyn Harris, a deputy chair of the CSJ, said the study showed the economy was suffering a "mid-life crisis".
She urged the Government to increase its work to deliver the WorkWell scheme, a new integrated work and health support service, to "stem the flow of the 300,000 or so who exit work every year due to sickness, and ensuring people get the support they need."