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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Economically inactive people……

235 replies

Watermelonnice · 02/08/2025 18:23

AIBU to think that the government needs to clarify who they mean when they say that they want to reduce the number of people who are economically inactive?

And to think they need to differentiate between the reasons for economic inactivity, including providing numbers who fall into each category.

It’s lazy to make this a headline without taking into account the different reasons and specifying who they mean.

Presumably they mean people who are unemployed, but economically inactive could include students, carers, disabled people, stay at home parents and those who have retired early.

Some will be reliant on the state for support but many will be completely self reliant and not claiming a thing from the government.

Why aren’t the government clearer on who they mean? Do they think they’ll persuade people who have retired early and others who have enough income without claiming any benefits to restart work?

OP posts:
NaicePeachJoker · 02/08/2025 21:59

WeylandYutani · 02/08/2025 21:51

I am on benefits and pretty much all of my money goes back into the economy. I dont get the chance to save any.
Not sure how that makes me inactive? Like someone else has said on here, I feel awfully judged and really bad about how it is worded.

I’m really not judging as I’m sure you’re doing your best to get back on your feet, but spending benefit money is not contributing to the economy.

Watermelonnice · 02/08/2025 21:59

MickGeorge22 · 02/08/2025 20:30

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.

Edited

I will hopefully do the same as you in a few years after 30+ years in nhs

OP posts:
WeylandYutani · 02/08/2025 22:01

NaicePeachJoker · 02/08/2025 21:59

I’m really not judging as I’m sure you’re doing your best to get back on your feet, but spending benefit money is not contributing to the economy.

Yes it is. That money goes towards businesses that go on to pay peoples wages. It keeps the economy moving.

ByQuaintAzureWasp · 02/08/2025 22:02

Economically inactive means anyone not working under normal state retirement age.

TBH I'm one of them, early retired, not claiming anything and still paying income tax.

NaicePeachJoker · 02/08/2025 22:05

WeylandYutani · 02/08/2025 22:01

Yes it is. That money goes towards businesses that go on to pay peoples wages. It keeps the economy moving.

This is no reflection on your circumstances, but where do you think the money came from? How have you added value?

Dymaxion · 02/08/2025 22:07

I’m really not judging as I’m sure you’re doing your best to get back on your feet, but spending benefit money is not contributing to the economy.

VAT is 6% of national income. It makes complete sense to encourage people not to spend their money on stuff that incurs VAT ?

LadyKenya · 02/08/2025 22:07

NaicePeachJoker · 02/08/2025 22:05

This is no reflection on your circumstances, but where do you think the money came from? How have you added value?

Really?

WeylandYutani · 02/08/2025 22:08

NaicePeachJoker · 02/08/2025 22:05

This is no reflection on your circumstances, but where do you think the money came from? How have you added value?

I am adding value by spending that money in the economy. All of it goes back in. Council tax and VAT for starters. I support small business by spending money there. Does it matter to them where my money came from? I am sure they benefit from it whether it comes from universal credit or it I robbed someone or earned it in a job.
Or I could draw it all out and keep it under my mattress.

MickGeorge22 · 02/08/2025 22:10

WeylandYutani · 02/08/2025 22:08

I am adding value by spending that money in the economy. All of it goes back in. Council tax and VAT for starters. I support small business by spending money there. Does it matter to them where my money came from? I am sure they benefit from it whether it comes from universal credit or it I robbed someone or earned it in a job.
Or I could draw it all out and keep it under my mattress.

You'll be paying barely any council tax if on UC ?

WeylandYutani · 02/08/2025 22:11

MickGeorge22 · 02/08/2025 22:10

You'll be paying barely any council tax if on UC ?

Depends on where you live

OutandAboutMum1821 · 02/08/2025 22:13

OP I can only speak for ex-teachers I know, but they are economically inactive either because they are happy SAHMs or took early retirement in their 50s. I even know one who recently left with nothing lined up and is relieved to be ‘unemployed’.

For these people, it’s irrelevant who the government is talking about or how they try to sweet talk or badger them back- they won’t be returning, and there is realistically nothing they can do about it.

NaicePeachJoker · 02/08/2025 22:18

Dymaxion · 02/08/2025 22:07

I’m really not judging as I’m sure you’re doing your best to get back on your feet, but spending benefit money is not contributing to the economy.

VAT is 6% of national income. It makes complete sense to encourage people not to spend their money on stuff that incurs VAT ?

If I give you £10 and then you buy a sandwich from me for £10, what have you contributed? and what have I contributed?

Octavia64 · 02/08/2025 22:21

Many early retired people are in fact out of the labour market due to ill health of one sort or another.

i am on of this group.

medical retirement is tricky to get and fucks with your pension so if you have savings it’s easier to use those and then get full pension.

lots of 50pluses should are simply not well enough to work full time or at all.

Sub2Mumma · 02/08/2025 22:25

Facts v good story always wins. Parents on parental leave (mat / pat leave etc) are also classed as Econ Inactive

Watermelonnice · 02/08/2025 22:26

OutandAboutMum1821 · 02/08/2025 22:13

OP I can only speak for ex-teachers I know, but they are economically inactive either because they are happy SAHMs or took early retirement in their 50s. I even know one who recently left with nothing lined up and is relieved to be ‘unemployed’.

For these people, it’s irrelevant who the government is talking about or how they try to sweet talk or badger them back- they won’t be returning, and there is realistically nothing they can do about it.

Edited

Yes I agree, many of my friends are the same and I can’t imagine any scenario where they would go back to work.

They are all self funded

OP posts:
bindin · 02/08/2025 22:29

Not necessarily. Some friends of ours have retired before reaching 60, they were high earners, company directors, drs etc.

Many of the over 50s who have retired are not from high incomes. Some will be of course but not the majority

bindin · 02/08/2025 22:31

"being sick, injured or disabled continues to be the main reason why people aged 50 to 64 years are economically inactive in the labour market, with 44.9% of individuals giving this as the main reason"

WeylandYutani · 02/08/2025 22:33

bindin · 02/08/2025 22:31

"being sick, injured or disabled continues to be the main reason why people aged 50 to 64 years are economically inactive in the labour market, with 44.9% of individuals giving this as the main reason"

Age that menopause can cause issues and if you have a physical job then that will be the ages you are struggling to carry on with it.
People say retrain but who is going to take on brand new career starters in their 50s and 60s?

echt · 02/08/2025 22:34

NaicePeachJoker · 02/08/2025 22:18

If I give you £10 and then you buy a sandwich from me for £10, what have you contributed? and what have I contributed?

Why have you given them money? For this to be a serious analogy, the money would have to come from the buyer's funds; savings, pensions or benefits.

Which one is it?

NaicePeachJoker · 02/08/2025 22:37

echt · 02/08/2025 22:34

Why have you given them money? For this to be a serious analogy, the money would have to come from the buyer's funds; savings, pensions or benefits.

Which one is it?

Benefits.

Purpleberet · 02/08/2025 22:38

Until the government stop frittering away £££s and enabling big business and the richest in society to get away without paying their way, I don’t want to know about who they perceive to be “economically inactive”
honestly it makes me sick

I am (was?) fairly politically engaged but now I’m really starting to lost hope

Watermelonnice · 02/08/2025 22:39

Mrsplants · 02/08/2025 20:55

It outlines it in the government white paper
https://www.gov.uk/government/publications/get-britain-working-white-paper/get-britain-working-white-paper

Box 3: What do we mean by economic inactivity?According to internationally agreed definitions, people in the labour market fall into one of 3 groups: employed, unemployed and economically inactive. Economically inactive people are those without a job who have not sought work in the last 4 weeks and/or are not available to start work in the next 2 weeks. This differs from the definition of unemployment, where people are without a job but are seeking work and available to start. Many economically inactive people contribute to the economy in ways other than work, for example, by caring or studying to build their skills. However, the UK’s current high economic inactivity rate is unsustainable, leaving many people excluded from the labour market and holding back economic growth.

So if economically inactive does not include unemployed people, then which group of economically inactive people are the government wanting to get back to work?

Or does it just sound good on paper but is completely unrealistic in practice.

And why not focus on the unemployed first rather than economically inactive?

Any why not focus on the reasons why people who want to work may not be able to, for example public transport, childcare etc

OP posts:
Watermelonnice · 02/08/2025 22:41

And I agree it is a derogatory judgmental term, aiming to cause division

OP posts:
ItIsFoggy · 02/08/2025 22:41

I guess I'm economically inactive. I could go earn money in a good job where people are desperately needed, but I'm caring for a disabled child. I get nothing for that. If I go earn money in a job, state supports will need to do what I currently do for free. That will cost the state tens of thousands of pounds that I currently save them by doing it for love. So I guess I'm actually economically active since I'm saving the state a lot of money by caring for someone with a disability myself. I think it comes under, they should be careful what they wish for.

EasternStandard · 02/08/2025 22:45

ByQuaintAzureWasp · 02/08/2025 22:02

Economically inactive means anyone not working under normal state retirement age.

TBH I'm one of them, early retired, not claiming anything and still paying income tax.

Yes. I thought it was a way to distinguish from unemployment figures as for that you need to be actively looking for work.

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