Downing Street Says » Default Retirement Age

» Thursday, July 29, 2010

Default Retirement Age

Asked what the Prime Minister thought about criticism from some in the business sector that the proposal to scrap the Default Retirement Age (DRA) would create uncertainty, the Prime Minister’s Spokeswoman (PMS) said that the point of this was to give greater choice to both employers and employees. We knew that older workers brought a wealth of talent and experience as employees, and that they had a vital contribution to make.

Put that if there was nothing to take the DRA’s place a vacuum would be created, the PMS said that this was a consultation process so we would listen to views from business.

Put that this would have a negative impact on youth unemployment, the PMS said that research had shown the opposite was true. Retaining more older people in work stimulated the economy, which in turn helped create more job opportunities for everyone, including young people. UK and international evidence had found that younger and older worker employment were not substitutes, and in some cases were complementary.

Asked if the Prime Minister agreed with the Pensions Minister’s comments on state pension, the PMS said that the government was looking at pension reform and wanted to be assured that the pension met the needs of older people.

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