Economically inactive people……

"The term “economically inactive” makes me feel like a second class citizen, but maybe I’m being over sensitive…"

No - it's a deliberate ploy by certain sections of the media to make people believe that there are second class citizens worthy of scorn. They used to be referred to as "scroungers" but the attempt to use more couched language is usually to refer to people as either "net contributors" or "net takers". The impact and purpose is the same - to demonise those who find themselves, for whatever reason, out of work or "economically inactive" and to put a halo of superiority on the heads of those who see themselves somehow as being of more value to society based solely on their financial input (and ignoring the non-financial "contribution" that is made by carers, volunteers and people like grandparents who provide unpaid childcare for their grandchildren).

This will be me in a couple of years. Been working in stressful jobs for 40+ years that have taken a toll on my physical and mental health. I will be taking my NHS pension and l will live off the monthly sum and interest from the lump sum . It will be just below the tax threshold so I won't be paying any tax. I intend to live a frugal life between 60-67 years. Between dh's and my pp's and savings we will hopefully just about mange if we live frugally. We know there won't be big holidays and cruises but we both know we likely aren't going to live to be a great age.

Many of us chose not to work full time and are happy to stop work as soon as we can afford to do so - the government have little chance of persuading people that are managing well back to work. They’d have to crash the economy, tax pension incomes etc……

I've been economically inactive since the arrival of dc1 10 years ago gave me postpartum psychosis and a host of other "fun" diagnoses.

Don't claim benefits but I do have two tax payer funded degrees. I would like to return to work and I have a bunch of up-to-date references due to volunteer work and other things but I can't imagine anyone wanting to employ me. My mental health issues undermined my confidence and I still have a perfectionism streak which leads to self destructive tendencies.

I paid tax on my work pension when I retired at 60. I have not cost the tax payer a penny more than I did when working but have done volunteer jobs that would otherwise have had to be paid.

They need to define what they mean. Early retirees may well pay tax, they may well pay voluntary NI, they will certainly pay council tax, vat, road tax etc. They will buy goods and services.

There are vanishingly few people living under rocks off grid in the UK; now they could legitimately be called economically inactive.

If they mean , people whose income is passive , or provided by benefits, then that’s what they need to say.

I’m in that group now. I worked for years, but suffered a MH crisis a year and a half ago and I’ve been out of work since that point. I don’t know when I’ll be well enough to return to work, but I hope it’ll be within a year. 🤞🏽

I claim contribution ESA, which makes me feel guilty, but I’d not be able to pay my mortgage and bills without it.

The term “economically inactive” makes me feel like a second class citizen, but maybe I’m being over sensitive…

It's also misleading as I'm 99% sure when they talked about economically inactive it never, ever used to include people unemployed and looking for work.

They were classed as, well, unemployed...

All about making the numbers look bigger!

Early retire can’t claim their state pension . They will often be living of savings to some extent or other - to supplement their private pension until they get the state pension. So many won’t be paying much income tax. Although they paid tax on it when yhey earned it in the first place

the government could look to understand this group - a group who value their time and health over making more money. Quitting the rat race , disillusioned with corporate life and the whole system.in my experience anyway

Yes exactly my point, I think they’re being deliberately vague and misleading

They certainly are.

By badging everyone "economically inactive" together they make it sound like a huge number of people who could be economically active, or even should be.
^
So when they^ announce their next measures targeting whoever they go for people are supportive of it because they have the huge bunched together figure in their brain, rather than the actual number.

In their eyes I'm economically inactive as I'm a carer for my youngest DD. A place to get me back to work would be economically stupid given what it would cost to have her in full time care.

I posted about this the other day. The numbers are quite easy to find, but your average daily Mail reader wouldn’t bother. Much easier to brand all these people lazy.

Of the around 11 million of working age economically inactive people, 1.6 million are unemployed and seeking work, a further 1.8 would like to work but are unable to for various reasons (caring responsibilities, illness, disability etc)
That leaves around 7.6 million people.
2 million are students
1.2 million have taken early retirement on a private pension and/or savings
1.3 million have caring responsibilities (largely women caring for children or parents)
2.1 million are unable to work through disability (largely between 50 and 64)
Around a million people are not working because they don’t need to work, they are financially independent.
Of the 11 million economically inactive people, who are not looking for work, the number of people the taxpayer is supporting is not “millions”. The government and the tabloids want you to believe there are millions sponging off the state, but the statistics do not bear that out. If everyone who is able and claiming out of work benefits and returned to work, there would still be about 9 million working age people who are economically inactive.

I retired at 60 so I think I was one, I think it includes anyone not working up to age 64, not just those claiming benefits. Didn't Jeremy Hunt try to have a plan to get early retired people back to work.

"Early retirees are spending money and self-funding, but they are not paying income tax and national insurance from their income, so it might look as a potential opportunity."

If their total income is more than £12,571 a year, early retirees certainly pay income tax if they have any form of income, as do pensioners. The full state pension alone (£11,973) uses up most of the personal tax-free allowance.

I've been 'economically inactive" since 1999 when I gave up work to care for our disabled DD. I did get carers allowance but the 24/7 365 days a year i worked for the approx £55pw (at the time) that i got, I'd say they've got a nerve calling me economically inactive when I was saving them ££££'s in care costs!
Since DD died i have been supported by DHs salary but I have undertaken a number of voluntary roles over the last 25 years (saving yet more Government money!)
I am now 'retired' in receipt of a final salary pension from the years I did work. DH has also retired. We don't qualify for State pension for a number of years but neither do we claim benefits. We contribute to the economy in many ways - more volunteering and having money to spend which means VAT goes to the government. DH also pays income tax.
The term economically inactive is very misleading in my opinion.

Being economically inactive doesn’t mean you are on welfare. It also doesn’t mean you could work but are choosing not to. Most of the groups of economically inactive people are unable to work due to circumstances. A large group of these are familial carers, caring for disabled or elderly relatives. If these people returned to work, who is going to look after those people? Will the government step in and provide proper respite or daycare for disabled children/adults?

I retired at 52 and pay more taxes than a lot of employed people. Plus I spend lots of money on goods and services.

The welfare state was created based on the findings of the Beveridge report of 1942 which identified the '5 giant evils' in society (Squalor, ignorance, want, idleness and disease

Idleness has to end.
Everyone can do something.

I never understand this concept.

Someone who does not have a job still contribute to the economy when they go to the shops, take the bus, pay their rent...

People who are carers for a disabled kid or adult or for their elderly parents save the taxpayer money because it would cost much more for them to be cared for in care homes.

Someone who retired early still spends money to buy food, socialise and so on. Or they might volunteer.

This black and white thinking is nonsensical.

It is like this obsession with 'working families' which seems to imply if you are single, childfree, a student, a pensioner or whatever Labour does not think you actually matter and have a place in society. Just bizarre.

😂😂😂

Well DH and I both took early retirement and we both pay tax on our pensions - although not NI.

Actually, they might mean the whole lot - they would love to make the overall number smaller and they will look into what could motivate/enable/force different groups.

Early retirees are spending money and self-funding, but they are not paying income tax and national insurance from their income, so it might look as a potential opportunity.

Some of the people will illness and disability might be able to work in some adjusted part-time job.

And so on.

I'm retired and certainly not economically inactive. I buy stuff all the time.

My husband is one - hasn't worked due to ill health for the last 4 years, but he's not 65 till next year (when he should get a small occupational pension, not enough to live off) and no state pension till 2028.

I pay more than enough tax for both of us, though, and we've never had a penny off the state - we're childfree, so not even child benefit.