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CBI: Abolition of DRA makes workforce planning more difficult

Date Added: 18/08/2010  

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Companies taking business debt advice have been warned over potential issues stemming from the abolition of the default retirement age (DRA).

The CBI has criticised the government for failing to take potential regulatory costs into account before deciding to scrap the DRA, which will be phased out from April 2011.

In his review of the coalition's first 100 days in office, the business organisation's director general Richard Lambert said the government should now focus on making the period of transition "as workable as possible" for employers.

He commented: "Workforce planning and staff development will be harder to manage and there is a risk of increased litigation as a result."

Announced in June's emergency Budget, the end of the DRA was one of several coalition policies grouped by Mr Lambert under the term "red light", which denotes changes that companies fear could harm job creation and economic recovery.

According to the government, the move was taken to help British people stay in work as they live longer lives.

Regulatory costs resulting from the end of the default retirement age could lead to increased demand for business debt advice.

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