Harman's Equality Bill - will it REALLY make a difference to older people wanting to work?
28/04/2009
The long-awaited Equality Bill aims to set out "groundbreaking new laws which will help narrow the gap between rich and poor; require business to report on gender pay; outlaw age discrimination; and significantly strengthen Britain’s anti-discrimination legislation." So how far does it really go - especially in the crucial area of age discrimination? Not very far - according to the Employers Forum on Age (EFA).
One key component of the new Bill, due to come into force in 2010, is to simplify the law which has become increasingly complex and difficult to navigate over the last four decades, and address inequalities such as:
• women are paid on average 23% less per hour than men
• disabled people are twice as likely to be out of work, and
• one in five older people are refused quotes for motor or travel insurance, or car hire.
Harriet Harman, Minister for Women and Equality, said of the Bill: “We will let employers have the right to choose to diversify their team, and with positive action we will end the last lawful discrimination - which is against older people.” But nothing has been done about removing the default retirement age (DRA).
Catharine Pusey, Interim Chief Executive at the EFA said: “With people living longer than ever before, the current rationale for continuing to enforce a DRA when people reach 65 is completely archaic. Every year thousands of people over 65 make huge contributions to the UK’s economy and heritage, yet despite being capable of continuing in work, many more individuals are involuntarily retired at 65.
“We had hoped that the civil service’s decision to remove this unfair and discriminatory practice of being able to insist their employees retire at 65 would have focused the Government’s mind. It is just plain hypocritical that MPs and Peers are exempt from the DRA, and cannot be forcibly retired at a specific age.
“These economic times create an even more pressing imperative for the Government to move faster on this issue. Pensioners need to work now because they have seen the financial crisis drain their pension value and as Britain becomes an ageing society, with huge demographic change, we are facing an even greater pensions’ crisis which will affect all of us.”
In the current economic climate, retaining an experienced workforce is essential to employers, and the EFA has submitted evidence to the Government’s review of the DRA, demonstrating that many employers are expecting the number of requests to work beyond 65 to keep rising.
Catharine continues: “Businesses need to develop workplaces that are flexible and function in the long term – removing the DRA will help them do this by changing an outdated culture of 65 years old being a reasonable cut off time.”
For further information about The Employers Forum on Age visit the website linked below.

