Key to the changes is the abolition of the default retirement age, currently set at 65, which would allow people to stay in work longer, potentially saving the UK economy billions of pounds.

Research from the National Institute of Economic and Social Research has shown that extending the average working life in the UK by 18 months would inject £15bn into the economy.

"The economy would be the big winner in the commission's plans," said the EHRC.

In addition to abolishing the default retirement age, the proposals include the extension of the right to request flexible working to all, overhauling employer recruitment practices to prevent discrimination, as well as improved training and development.

Harriet Harman, deputy leader of the Labour party, has also voiced a desire to change the law that currently allows employers to terminate a worker's contract once they reach 65, without any redundancy pay, even if the employee wishes to continue working.

In a recent speech to charity Age Concern, Harman said: "The retirement age is arbitrary, it bears no relation to people's ability. Think of people running their own business – they do not shut up shop suddenly when they reach the age of 65.

"People are remaining active and healthy well into their older years. But, at the moment, there is no legal backing for you if you want to stay at work, so what we are proposing is a massive public policy change. We do want people, if they want to, to be able to stay working for longer and flexible working is a way that enables them to do that."