The Trades Union Congress (TUC) has criticized the UK’s Work and Pensions Secretary, Mel Stride, for promoting the gig economy instead of addressing the real challenges faced by older workers. During a visit to Deliveroo’s London headquarters, Stride suggested that unemployed individuals over the age of 50 should consider becoming delivery riders. The TUC’s senior policy officer for employment rights, Tim Sharp, argued that the gig economy often offers low pay, lack of job security, and limited employment rights. Sharp cautioned that Stride’s comments risk glorifying the gig economy and called for the government to provide older workers with the necessary flexibility and support.
The TUC further highlighted that although some improvements have been made in gig economy conditions, such as the recognition agreement between Deliveroo and the GMB union, these jobs do not necessarily offer genuine flexibility for workers. Dr. Callum Cant from the Internet Institute at Oxford University also expressed concern, stating that gig economy jobs are insecure with no guaranteed wage, making them an unsuitable source of pension income. Luke Price, policy manager for the Centre for Ageing Better, agreed that older workers require flexibility for caring responsibilities, which may not align with such work.
The Deliveroo riders, like many gig economy workers, are self-employed, a status defended by the delivery company in a prolonged court battle against the Independent Workers’ Union of Great Britain. The government’s lack of a coherent plan to tackle economic inactivity among older workers, as evidenced by Stride’s remarks, was criticized by Labour’s shadow employment minister, Alison McGovern. She claimed that the UK is the only G7 country with a lower employment rate than before the pandemic. While recent data showed a tentative reversal in the rise of economically inactive individuals aged 50-64, the inactivity rate for this age group remains more than twice that of those aged 35-49.
The government has announced initiatives in the budget to encourage older workers back into the labor market, including expanding financial checkups and introducing “returnerships.” However, these measures have been criticized as insufficient. Deliveroo responded that it offers flexible, self-employed work to over 90,000 riders in the UK, with earnings guaranteed to be at least the National Living Wage. The company’s landmark agreement with the GMB union allows collective bargaining on pay, benefits, and other issues.
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