Business groups have warned that Government plans against age discrimination could unintentionally lead to fewer Britons working beyond the official retirement age.

The Confederation of British Industry (CBI), the British Chambers of Commerce, and the Employers Forum on Age have all warned that the draft regulations are confusing.

The draft regulations have prompted fears that companies would retire everyone at the default retirement age of 65 – introduced last year after pressure from employers.

Business groups also want the time within which an employee must request an employment extension raised from six weeks before retirement to three months.

John Cridland, CBI deputy director-general, said: “Government must ensure the regulations are also workable and business-friendly. These draft regulations don’t give employers and employees the clarity they need.”