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General Election 2010: The importance of the DRA
Two of the UK's main three political parties have pledged to scrap the default retirement age (DRA) this week, with the other being willing to change it from its current age of 65.
In their 2010 pre-election manifestos, the Conservatives and the Liberal Democrats stated that the DRA is too restrictive because, in the words of the Liberal Democrats, it is the government's responsibility to allow those older people "who wish to continue in work the right to do so". Both parties would therefore remove it if they were to win the May 6th general election.
Labour, however, refused to commit to the complete abolition of the DRA, instead citing the need for a comprehensive review of the process later this year. The party has pledged to change the DRA in order to involve older citizens in its widespread promotion of flexible working, but this will likely simply lead to it being increased rather than removed altogether.
The DRA has become one of the most divisive policy points in British politics since its introduction in October 2006. Age concern groups have long derided it as discriminatory, needless and unfair.
In February of this year, research by Age UK found that more than 100,000 older workers had been forced out of their jobs by their employer using the DRA during the economic downturn.
"Our survey clearly shows the use of forced retirement has spiralled out of control," said Michelle Mitchell, director of Help the Aged.
"The DRA has stamped an expiry date on hundreds of thousands of older workers - it's the most disturbing example of age discrimination which still tarnishes later life for so many people."
So why, at a time when his party trails David Cameron's Conservatives by nine per cent in the opinion polls, has Gordon Brown not decided to follow his competitor's lead by seeking to get rid of the much-maligned DRA?
The answer may well be simple: to attract the business vote.
Since the release of its An Invitation to Join the Government of Britain manifesto on Tuesday, the Conservative party has been widely criticised by Britain's business groups for advocating the complete removal of the DRA.
John Cridland, deputy director-general of the Confederation of British Industry (CBI), said: "Ending the DRA would be unhelpful. It helps employees think about when it is right to retire and enables employers to plan more confidently for the future."
On the one hand, the DRA can help with workforce and succession planning, but on the other many feel it to be a power that can be easily abused. However, it is, according to EEF, the manufacturers' body, crucial for smaller firms.
"Manufacturers will be concerned that the Conservatives have gone further than Labour in pledging to abolish the DRA," said David Yeandle, head of employment policy at EEF.
"Any changes to the retirement age must be implemented gradually so that employers and employees can plan for their future needs with greater certainty."
The Chartered Institute of Personnel and Development (CIPD) agrees with this viewpoint, stating that the DRA should be scrapped but only from 2013 so employers have enough time to prepare and adjust their internal policies.
The DRA has become a key battleground in the race for power.
Indeed, it could be where the May 6th general election is won and lost.
Posted by Daniel Frost..
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