A High Court has ruled that the retirement age should stay at 65, ahead of a Government review in 2010.

A High Court has today ruled that the Default Retirement Age (DRA) is lawful but agreed that there is now a “compelling case” for increasing the retirement age.

The decision has left a number of agencies seething. The Equality and Human Rights Commission (EHRC) is renewing its calls on the Government to scrap the DRA and Age Concern, together with Help the Aged, who in 2006 bought the case against the UK Government arguing that the DRA was in breach of European Union Law, is extremely disappointed with the decision.

Mr Justice Blake who oversaw the hearing acknowledged the ‘very substantial weight’ of the arguments put forward by the two agencies, and said in his ruling that he took into account the Government’s move to bring forward a review of the DRA from 2011 to 2010.

John Wadham, Legal Director for the EHRC, said: “The judge has set out a strong signal that it is only a matter of time before the default retirement age of 65 is removed, and we will consider what action we could take next.

Age Concern and Help the Aged joined forces as one single institution in 2008 and it has been tirelessly campaigning to have the forced retirement age scrapped. It has cited a multitude of reasons, including the serious drop in value of pensions; the effect of the economic downturn; and a general desire of older people to carry on working.

Andrew Harrop, Head of Policy at Age Concern and Help the Aged, is disappointed with the High Court ruling: “We will be stepping up our fight to get this outdated legislation off the statute book. Despite the judgement today, Ministers will have the opportunity this side of a crucial General Election to give real help to people in their 60s by outlawing forced retirement.”

According to the charity, almost nine out of ten over-50’s believe people should have the right to continue working past 65 should they wish, as long as they are capable of performing well in their job.

Research from The Age Employment Network (TAEN) has also found that one in three employers using a mandatory retirement age thought that it can lead to a loss of valuable knowledge and talent.

However, Stephen Alambritis, of the Federation of Small Businesses, said that it is still vital to have a DRA in place to ensure it does not end up at tribunal.