Queen's Speech: Bill to phase out default retirement age

The Queen today confirmed the coalition government will legislate for the phasing out of the default retirement age (DRA) and set a timetable for raising the state pension age, depending on the outcome of a review.

The Queen said the government will also restore the link between earnings and the state pension. This applies to England, Scotland and Wales.

It is understood the department for business - rather than the Department for Work and Pensions - will lead discussions on the DRA.

EEF head of employment policy David Yeandle says he'd be "surprised" if Secretary of State for Business Vince Cable didn't take a view on the issue.

He adds: "At the end of the day, I suppose it will come down to who wins the day when they [DWP and business ministers] are sat round the cabinet table."

Yeandle suggested a formal consultation exercise, covering issues such as process and timetabling, would be the most likely outcome.

Speaking in the House of Lords this morning, the Queen outlined the new government's plans for the next 18 months.

She said they would seek "fair" payouts for more than 1 million Equitable Life victims. The Treasury will be granted new powers to make compensation payments to policyholders through the Equitable Life Bill.

Savers lost money as a result of the pension company's near-collapse in 2000 and have been fighting for compensation payments ever since.

The government had previously promised to cover policyholders' "relative loss".

The future of the Financial Services Authority remains unclear although the government will press ahead with plans to put "macro-prudential" regulation back in the hands of the Bank of England.

Under the proposed Financial Reform Bill, the tripartite regulation system introduced by Labour in 1997 will be abolished.

That system shared responsibility between the Bank of England, the FSA and the Treasury.

Much of the Queen's Speech 2010 was leaked to two newspapers at the weekend.

Read the full ist of bills here.