New proposals to crack down on age discrimination in the workplace were today unveiled by industry secretary Patricia Hewitt and pensions secretary Alan Johnson.
The proposals are a key part of the European Employment Directive, prohibiting age discrimination in employment and vocational training, which the government is committed to implementing by 2006.
Stakeholder Response: Help the Aged
Tessa Harding, senior policy adviser for Help the Aged, said: "This is a staggering decision. Age equality has yet again, been given the back seat
"The UK is required to eliminate age discrimination in employment by 2006. Yet, the government has decided to retain one of the key features of that discrimination.
"So many people are forced to retire, whether they want to or not, just because they have reached an arbitrary birthday – where is the sense in that?
"This is a major stumbling block on the road to equality that the government has been promoting so rigorously in other fields."
Stakeholder Response: Institute of Directors
Richard Wilson, head of business policy at the Institute of Directors, said: "The government's decision to provide for a default retirement age of 65 in age discrimination legislation, while creating a right for employees to request working beyond this age which employers have a duty to consider, is probably a reasonable compromise.
"During the consultation process on age discrimination legislation the Institute of Directors did not specifically ask the government to establish a default retirement age. However, in a survey of 966 directors in 2003, 47 per cent of members said that if the government were to establish a default retirement age, it should be set at 65.
"Although the IoD membership was divided on the issue of the need for a statutory retirement age, many of them are likely to look favourably on requests to carry on working after the age of 65. Such workers are likely to be highly committed, have a great deal of experience and will be of value to a business.
"The Institute of Directors looks forward to commenting in detail on the draft legislation relating to age discrimination next year."