The rising cost of recruitment was one of the key worries uncovered by a study by the Age Partnership Group.

Large companies were more welcoming - saying the changes would allow them to retain more staff, increase choice in the labour market and employ better people.

But small firms were worried about all of these issues, the BBC reported.

The legislation, which comes into force in October, will make it illegal to force someone to retire before the age of 65. All employment practices must be based on skill and competency - not age.

To help firms understand what they need to do to comply, the DTI has published eight factsheets providing practical advice on the new rules.