DRA will 'leave a vacuum' for businesses

Companies are not being left with sufficient time to prepare for the phasing out of the default retirement age (DRA), one expert has claimed.

John Cridland, Confederation of British Industry deputy director-general, added that a number of firms will be left with "unresolved problems".

His comments come after the government announced on Thursday (28 July) that DRA will be gradually removed from April 2011.

The specialist observed that the move will "leave a vacuum" and create a level of concern and uncertainty among staff and their employers alike.

Mr Cridland noted that the current system helps people think about when they want to stop working, while it also lets an organisation plan for the future as it knows when it will have to be taking on new staff.

According to a recent survey by the British Chamber of Commerce, 64% of those questioned agreed with the measures implemented by those in power in the emergency Budget.