Retirement age change welcomed in East Lancashire

From October next year, employers will no longer be able to dismiss staff at their 65th birthday, with employees entitled to work for as long as they feel fit and healthy.

Currently, an employer can force any worker to retire at 65, providing six months’ notice has been given.

However, some national business groups have said it would make it difficult for employers to plan for the future.

There was also criticism that it was being introduced at short notice.

Adam Marshall, director of policy at the British Chambers of Commerce, said: "The Government has pledged to reduce the burden of employment law, but at the same time it is proposing to restrict businesses' ability to manage their workforce by phasing out the DRA.

"Many small and medium-sized firms value the DRA as it triggers a conversation about an employee's future and provides both sides with an opportunity to plan.

"Companies value the skills and experience of older workers, and most do keep them on, but they also value the freedom to manage their workforce."

The reaction was in sharp contrast to the views of campaigners and age charities which warmly welcomed the announcement as 'great news'.

Michelle Mitchell, Age UK charity director, said: "We have fought a four-year campaign to achieve this historic decision, so Age UK is absolutely delighted that the Government is finally setting a clear date for the abolition of this arbitrary and unfair law."

Employment Relations Minister Edward Davey said: "With more and more people wanting to extend their working lives, we should not stop them just because they have reached a particular age."

What business leaders think

East Lancashire Chamber of Commerce chief executive Mike Damms said: “The days when people used to work until 65 and were then down and out are long gone. People last longer now.

"Most employers recognise that there are some obvious benefits to keeping older people, including the experience they offer.

“The only problem I would foresee is that it makes it more difficult for businesses to plan for the future as they would be unsure at what point people will retire.”

Peter Byrne, head of employment at East Lancashire-based Forbes Solicitors, said: "“I would hope that the government will provide clear guidance as to how employers can continue to manage their workforce in the future in relation to enforced retirement when the existing system is removed altogether.”

Steve Ackers, managing director of Lanway IT Solutions, Network 65 business park, Hapton, said: "I think this is something that should be up to the individual.

"We are all living longer and a lot of people feel that they are not ready for retirement at 65.

“I for one will not be kicking people out of the door as soon as they hit 65.”

Wayne Wild, managing director of engineering firm WEC Group, Darwen, said: "We have recently had someone who worked past 65 for us and it was valuable having his experience.

“But I don’t see this affecting us too much because we are not the type of company that is desperate to get rid of people.”

George Heys, owner of Heys and Son Family Butcher, Burnley, said: “There’s a lot of experience among older people and I think they should be able to carry on if they want to.

“However, it has got to be a two-way street and employers must get something out of it too.”

Paul Hoyle, director at Ashton Hoyle financial advisors in Blackburn and president of the Blackburn Chamber of Trade, said: "If older people are experienced and add a lot to the business then that is a lot for a company to lose simply because they have turned 65, an age that was set years ago when we didn’t live as long."

Chef Paul Heathcote, who owns restaurants across the North West, said: "We are all living longer and are generally healthier and so to do this makes a lot of sense.

“If people want to work on they should be allowed to.”

Steve Gray, chief executive of Blackburn-based training organisation Training 2000, said: "We have got people at 67 and 68 who work for us and my view is that if people want to work, they should be able to.

“At the moment it is as if all people have reached their sell-by date at 65. This would give people more choice.”

What workers say

Retired Maxine Twist, 60, of Grange Drive, Hoghton, said: “I think you should be able to work for as long as you want. My mother-in-law was forced to retire just after her husband had died, but she needed that job.”

Self-employed property maintenance man Karl Evans, 43, of Blackpool, said: “People aged 65 and over can still contribute a lot to the working world. They may not be able to do heavy lifting but they can do other things. Employers should be flexible.”

Bob Raynor, 58, a welder of Livesey Branch Road, Blackburn, said: “If it’s down to individuals’ choices, then that is fair enough. But if they are just stacking shelves, it is not the sort of thing you need years of experience for.”

Student Fatemah-Bibi Dadhiwala, 24, of Shear Brow, Blackburn, said: “I think people should be able to work on if they want to. However, there is also the issue that people like me struggle to get a job because of older people in employment.”

Christina Cramsie, 46, of Newington Avenue, Brownhill, Blackburn, who works for Jobcentre Plus, said: “I think it is nice to be given the option, rather than being told to leave at 65. Where I work we often get older people ringing up for work. They have got the experience.”

Student Sadie Taylor, 17, of Bog Height Road, Darwen, said: “I think they should leave at 65 so younger people can begin work. It is stopping younger people from starting their careers.”