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Policy Briefs and Updates
Campaigns
Conference 2009
Events
In the News
Member eBulletins
Member eBulletins Archive
Policy Briefs and Updates
The EFA currently campaigns the Government on a number of issues on behalf of its members. Please find the latest news on our political campaigning work below.
Lords Debate
The EFA's campaign to encourage the Government to remove the Default Retirement Age has moved up a level. As a direct result of our spoof retirement letters to Members of the House of Lords, and the strong expressions of support that we received across all parties, Baroness Greengross secured a debate in the House on the matter on 13 January 2009. The motion asked Her Majesty's Government if they plan to reform the Default Retirement Age.
Peers from all parties came together to call for an end to the default retirement age. The cross-party call comes after EFA’s extensive engagement with an array of influential thinkers in the upper house, and increases the momentum behind our campaign to abolish the DRA.
Leading sociologist Lord Giddens highlighted that, “Anyone who studies pensions…knows that we need a higher proportion of older people in the labour force. They also know that the UK is not doing as well as some other countries, which have liberalised their age of retirement in a much more radical way than the UK has done.“
He also said that, contrary to expectation, keeping older workers on beyond a statutory retirement age, does not reduce the proportion of younger workers entering the workforce, and in fact “the opposite was true”. He highlighted Finland as a country which has a high proportion of both young and older workers.
President of EFA Lord Stevenson commented: “Being 65 is not what it used to be. I owe this insight to the noble Baroness, Lady Murphy, who was one of the country’s leading experts in geriatric medicine. When I reached the ripe old age of 60 a few years ago she consoled me by explaining that as a result of changes in diet, health, science and medicine, to get your equivalent age in your parent’s generation you need to take 12 years off. Therefore, at aged 60 I was 48 in my father’s years”.
Influential peers such as Lord (Anthony) Giddens and Conservative frontbench spokesman Lord de Mauley argued that in the current economic climate, retaining an experienced workforce is essential to employers. Their ability to train younger recruits and the knowledge they have assimilated over the years is essential in keeping any company well run during more difficult times. It is also beneficial to the economy that older workers make longer contributions to pension pots.
CBI claims that employers need a default retirement age to plan ahead and allow people to retire with dignity were rejected by the Lords, and labelled as “an excuse for bad management” by Lord Oakeshott. If proper appraisal methods are implemented by employers, he argued, any other evaluation technique - such as age - would be redundant.
As Government minister Lord Carter pointed out, older workers will help businesses pull through and out of the economic downturn as markets improve, but conversely, they may be those who are often worst hit. It is therefore disappointing that the Government is not more forthcoming to anything beyond a review of the DRA in 2011, despite cross-party support for its abolition. The EFA will continue to increase awareness of this issue and campaign on behalf of our members to eradicate this age discriminatory piece of legislation.
To find out more call Catharine Pusey on 020 7785 6556 or Beth Vaughan on 020 7785 6539ß
You're Fired!
Imagine a world where Winston Churchill and Nelson Mandela had been forced to retire at 65.
Winston Churchill announced the end of World War Two at 70. Nelson Mandela was the country's first black President at 77. MPs who are 65 and over will this week receive notice of their retirement date as The Employers Forum on Age continues to highlight how outdated the UK's retirement rules are. There are 78 MPs and 510 peers over the age of 65 who, under current rules, could be excluded from Parliament - depriving both Houses of decades of experience, knowledge and wisdom. As part of an ongoing campaign to urge employers and politicians to take a different approach to retirement, the EFA has sent spoof retirement letters to all MPs who are approaching or over 65 years of age to notify them that they will need to retire in nine months time. The format replicates the standard notice of retirement letter that thousands of workers in the UK receive when they reach 65 - regardless of whether they wish to retire or not.
Download the retirement letter (PDF format 2MB) and the campaign leaflet (PDF format 2.6MB)
Retirement
Whatever the outcome of the Heyday challenge it is clear that the default retirement age cannot continue indefinitely. The EFA is working with a growing number of employers who are operating very successfully without a fixed retirement age and is encouraging other members to follow suit. The referral to the ECJ has major repercussions for public sector employers, who as an emanation of the state, could face retrospective claims for any forced retirement post October 2006.
The EFA believe that the Government should commit to removing the default retirement in 2011 and not simply to a review, which would provide clarity for employers and give them five years to prepare.
Understanding Generation Y
'I want it all and I want it now!'
This sentiment typifies the challenging new attitude Generation Y (those born in the eighties and nineties) are bringing to the workplace.
Our recent research found that Generation Y'ers have a greater degree of self-belief, determination and desire for change than their predecessors. They represent 22% of the workforce, yet nearly half of all graduates leave jobs within two years with the resulting recruitment, retention and management implications.
Here we set out our research findings and bring together the evidence on this issue. The advice contained here, from embracing new technology to developing relevant reward packages, will help you develop new ways of working which avoid inter-generational conflict and harness the new dynamism and skills.
Download the Understanding Generation Y PDF (2MB)
A New Age is Born
Ageism can affect anyone at any age. Ageism can stop you getting work, medical care, training, pay, insurance ...
When you're treated differently because of your age, it hurts as much as sexism or racism. The problem is people just don't think there's anything wrong with being ageist.
What do you think?
Visit A New Age is Born website to find out more.
Single Equality Act
We are currently responding to the Government's Framework for Fairness with proposals for a Single Equality Act, which was published in June. The framework considers extending age legislation to goods & services and public sector duties. Much of what is proposed was extensively publicised in recent months in briefings and speeches by the Minister for Women and Equality and others. As a result, there are few, if any, surprises. We continue to liaise with Government Departments, MPs and stakeholders about the proposed Bill. The Bill is expected to enter Parliament early in the New Year.
The EFA's summary of the Bill, primarily taking an age perspective, can be downloaded below:
Members sign in to download pdf
Minimum Wage
The Government retained the age bands within the National Minimum Wage, paying those under 22 less than those over 22. 18-21 year olds are paid a 'development rate' which can be applied irrespective of their irresponsibility. The EFA believes that this constitutes unjustified direct age discrimination and will be successfully challenged as it constitutes direct age discrimination. While the youth rate (16-17 year olds) might be objectively justified as there are statutory restrictions on the work they can undertake, this is not the case for the 18-22 age group. While there may be a need to retain a reduced rate for inexperienced workers, this should not be based on age.
The EFA calls on the Government to equalise all minimum wage standards for those over 18. We are currently submitting a response to the Low Pay Commission's consultation.
The EFA's position paper can be downloaded below;
Members sign in to download pdf
Redundancy
Age bands remain for redundancy payments in some schemes for those above 40. The Government opted to keep the age limits in Statutory Redundancy Payments Scheme (SRPS) and only allow those employers' enhanced schemes which mirror the SRPS to be lawful (Regulation 33). This makes many employers schemes potentially unlawful, including the Government's own redundancy scheme. Many enhanced redundancy schemes are contractual and employers are finding it difficult to amend them without lengthy negotiation with unions or employee representatives.
The EFA seeks an amendment of the regulations to ensure employers' enhanced redundancy schemes (including service only schemes) are lawful.
Apprenticeships
Despite the introduction of the age regulations, age limits on funding for apprenticeships remains. Those wishing to undertake an Apprenticeship over the age of 25 will have to partly fund themselves. The EFA believes that limiting access to training on the grounds of age is discrimination. The DfES does not believe that age regulations impact on funding regimes, despite the fact the regulations refer to 'access to vocational training'. Many would argue access is determined by the availability of funding.
We are seeking a review of age-based funding of training by Government.
Insured Benefits
We have been working with the ABI and GRID raising the issue of insured benefits and pushing for an exemption under the regulations. This exemption would protect benefit schemes and remove the challenge faced by employers wanting to retain people post 65.
The EFA recently conducted a survey of members to establish the impact of the age regulations on employee benefits. Feedback confirmed our concerns that employers were either (or planning to) drop benefits, not employ people over 65 or limit income protection to 5 years in order to cap risk. At the moment most are self insuring in the short term.
We continue to lobby Government and DTI officials. Another meeting is scheduled for September when we will report on developments. This issue was recently raised in the FT and we are increasing the pressure on Ministers to make an early decision.
Lords Debate
The EFA's campaign to encourage the Government to remove the Default Retirement Age has moved up a level. As a direct result of our spoof retirement letters to Members of the House of Lords, and the strong expressions of support that we received across all parties, Baroness Greengross secured a debate in the House on the matter on 13 January 2009. The motion asked Her Majesty's Government if they plan to reform the Default Retirement Age.
Peers from all parties came together to call for an end to the default retirement age. The cross-party call comes after EFA’s extensive engagement with an array of influential thinkers in the upper house, and increases the momentum behind our campaign to abolish the DRA.
Leading sociologist Lord Giddens highlighted that, “Anyone who studies pensions…knows that we need a higher proportion of older people in the labour force. They also know that the UK is not doing as well as some other countries, which have liberalised their age of retirement in a much more radical way than the UK has done.“
He also said that, contrary to expectation, keeping older workers on beyond a statutory retirement age, does not reduce the proportion of younger workers entering the workforce, and in fact “the opposite was true”. He highlighted Finland as a country which has a high proportion of both young and older workers.
President of EFA Lord Stevenson commented: “Being 65 is not what it used to be. I owe this insight to the noble Baroness, Lady Murphy, who was one of the country’s leading experts in geriatric medicine. When I reached the ripe old age of 60 a few years ago she consoled me by explaining that as a result of changes in diet, health, science and medicine, to get your equivalent age in your parent’s generation you need to take 12 years off. Therefore, at aged 60 I was 48 in my father’s years”.
Influential peers such as Lord (Anthony) Giddens and Conservative frontbench spokesman Lord de Mauley argued that in the current economic climate, retaining an experienced workforce is essential to employers. Their ability to train younger recruits and the knowledge they have assimilated over the years is essential in keeping any company well run during more difficult times. It is also beneficial to the economy that older workers make longer contributions to pension pots.
CBI claims that employers need a default retirement age to plan ahead and allow people to retire with dignity were rejected by the Lords, and labelled as “an excuse for bad management” by Lord Oakeshott. If proper appraisal methods are implemented by employers, he argued, any other evaluation technique - such as age - would be redundant.
As Government minister Lord Carter pointed out, older workers will help businesses pull through and out of the economic downturn as markets improve, but conversely, they may be those who are often worst hit. It is therefore disappointing that the Government is not more forthcoming to anything beyond a review of the DRA in 2011, despite cross-party support for its abolition. The EFA will continue to increase awareness of this issue and campaign on behalf of our members to eradicate this age discriminatory piece of legislation.
To find out more call Catharine Pusey on 020 7785 6556 or Beth Vaughan on 020 7785 6539ß
You're Fired!
Imagine a world where Winston Churchill and Nelson Mandela had been forced to retire at 65.
Winston Churchill announced the end of World War Two at 70. Nelson Mandela was the country's first black President at 77. MPs who are 65 and over will this week receive notice of their retirement date as The Employers Forum on Age continues to highlight how outdated the UK's retirement rules are. There are 78 MPs and 510 peers over the age of 65 who, under current rules, could be excluded from Parliament - depriving both Houses of decades of experience, knowledge and wisdom. As part of an ongoing campaign to urge employers and politicians to take a different approach to retirement, the EFA has sent spoof retirement letters to all MPs who are approaching or over 65 years of age to notify them that they will need to retire in nine months time. The format replicates the standard notice of retirement letter that thousands of workers in the UK receive when they reach 65 - regardless of whether they wish to retire or not.
Download the retirement letter (PDF format 2MB) and the campaign leaflet (PDF format 2.6MB)
Retirement
Whatever the outcome of the Heyday challenge it is clear that the default retirement age cannot continue indefinitely. The EFA is working with a growing number of employers who are operating very successfully without a fixed retirement age and is encouraging other members to follow suit. The referral to the ECJ has major repercussions for public sector employers, who as an emanation of the state, could face retrospective claims for any forced retirement post October 2006.
The EFA believe that the Government should commit to removing the default retirement in 2011 and not simply to a review, which would provide clarity for employers and give them five years to prepare.
Understanding Generation Y
'I want it all and I want it now!'
This sentiment typifies the challenging new attitude Generation Y (those born in the eighties and nineties) are bringing to the workplace.
Our recent research found that Generation Y'ers have a greater degree of self-belief, determination and desire for change than their predecessors. They represent 22% of the workforce, yet nearly half of all graduates leave jobs within two years with the resulting recruitment, retention and management implications.
Here we set out our research findings and bring together the evidence on this issue. The advice contained here, from embracing new technology to developing relevant reward packages, will help you develop new ways of working which avoid inter-generational conflict and harness the new dynamism and skills.
Download the Understanding Generation Y PDF (2MB)
A New Age is Born
Ageism can affect anyone at any age. Ageism can stop you getting work, medical care, training, pay, insurance ...
When you're treated differently because of your age, it hurts as much as sexism or racism. The problem is people just don't think there's anything wrong with being ageist.
What do you think?
Visit A New Age is Born website to find out more.
Single Equality Act
We are currently responding to the Government's Framework for Fairness with proposals for a Single Equality Act, which was published in June. The framework considers extending age legislation to goods & services and public sector duties. Much of what is proposed was extensively publicised in recent months in briefings and speeches by the Minister for Women and Equality and others. As a result, there are few, if any, surprises. We continue to liaise with Government Departments, MPs and stakeholders about the proposed Bill. The Bill is expected to enter Parliament early in the New Year.
The EFA's summary of the Bill, primarily taking an age perspective, can be downloaded below:
Members sign in to download pdf
Minimum Wage
The Government retained the age bands within the National Minimum Wage, paying those under 22 less than those over 22. 18-21 year olds are paid a 'development rate' which can be applied irrespective of their irresponsibility. The EFA believes that this constitutes unjustified direct age discrimination and will be successfully challenged as it constitutes direct age discrimination. While the youth rate (16-17 year olds) might be objectively justified as there are statutory restrictions on the work they can undertake, this is not the case for the 18-22 age group. While there may be a need to retain a reduced rate for inexperienced workers, this should not be based on age.
The EFA calls on the Government to equalise all minimum wage standards for those over 18. We are currently submitting a response to the Low Pay Commission's consultation.
The EFA's position paper can be downloaded below;
Members sign in to download pdf
Redundancy
Age bands remain for redundancy payments in some schemes for those above 40. The Government opted to keep the age limits in Statutory Redundancy Payments Scheme (SRPS) and only allow those employers' enhanced schemes which mirror the SRPS to be lawful (Regulation 33). This makes many employers schemes potentially unlawful, including the Government's own redundancy scheme. Many enhanced redundancy schemes are contractual and employers are finding it difficult to amend them without lengthy negotiation with unions or employee representatives.
The EFA seeks an amendment of the regulations to ensure employers' enhanced redundancy schemes (including service only schemes) are lawful.
Apprenticeships
Despite the introduction of the age regulations, age limits on funding for apprenticeships remains. Those wishing to undertake an Apprenticeship over the age of 25 will have to partly fund themselves. The EFA believes that limiting access to training on the grounds of age is discrimination. The DfES does not believe that age regulations impact on funding regimes, despite the fact the regulations refer to 'access to vocational training'. Many would argue access is determined by the availability of funding.
We are seeking a review of age-based funding of training by Government.
Insured Benefits
We have been working with the ABI and GRID raising the issue of insured benefits and pushing for an exemption under the regulations. This exemption would protect benefit schemes and remove the challenge faced by employers wanting to retain people post 65.
The EFA recently conducted a survey of members to establish the impact of the age regulations on employee benefits. Feedback confirmed our concerns that employers were either (or planning to) drop benefits, not employ people over 65 or limit income protection to 5 years in order to cap risk. At the moment most are self insuring in the short term.
We continue to lobby Government and DTI officials. Another meeting is scheduled for September when we will report on developments. This issue was recently raised in the FT and we are increasing the pressure on Ministers to make an early decision.
