Introduction

Age discrimination is once again back on the British political agenda. On 1 October 2006 there will come into force the new Age Regulations, which will outlaw age discrimination in key aspects of employment (principally recruitment, promotion and training) and extend full employment rights (for example, regarding unfair dismissal) to those aged 65+. All statutory retirement ages under 65 are to be banned (unless ‘objectively justified’) and employees will have a right to request to remain working past the age of 65. Both direct and indirect discrimination will be covered, and at any age. Much will be clarified in years to come: the ‘objective justification’ defence will be repeatedly tested and re-defined, as will those areas where age is a ‘genuine occupational requirement’, and it is likely that the proposed ‘default age’ for retirement of 65 will be abolished well before its review date (2011), in the face of a critical onslaught from many quarters. For example, the recent (November 2005) report of the Pensions Commission strongly urges its complete removal, hoping that this ‘will be accompanied by changes in practice and culture towards older workers’ (Pensions Commission, 2005, p 341). The future of mandatory retirement in Britain is thus uncertain. In addition, many other policies and initiatives have been introduced to encourage working later in life, such as the new financial incentives to defer claiming a state pension. As one recent commentator aptly puts it, the over-50s have become ‘a key policy target group’ (Whiting, 2005, p 286).

The immediate reasons behind this revival of interest are obvious. First, the economic activity rates of older men have fallen markedly since the 1970s, and those of older women have risen only slightly. One third of people aged between 50 and state pension age are now jobless. Their employment rates have risen by a few percentage points since the mid- 1990s (from 62.5% in 1994 to 69.9% in 2004), in response to improved economic conditions, a tighter labour market and concerns over the erosion of private pensions. Their economic activity rates have risen less so, however, and there is continuing concern over the older ‘discouraged worker’. Interestingly, the number who are economically inactive has actually risen since 1994, although this represents a proportionate fall (Whiting, 2005, pp 285-7). Projections suggest that no further decline in employment rates will take place (Armitage and Scott, 1998).