The research, commissioned by the DWP’s Age Partnership Group and Age Positive Campaigns, found that the sector is unusual in having a high proportion of employees both over the age of 65 and under 24.

It also highlighted that 73% of public employers in the community sector use age as a recruitment criteria, compared to just 20% of private employers. A further 50% of public employers use age in selecting for redundancy and setting redundancy pay levels.

The findings come just two months before the introduction of new age discrimination legislation, due to come into force on 1 October.

Minister for pension reform James Purnell said: “We recognise that we have an ageing population, with many older people who want the choice to continue working rather than retire.

“We also know that older workers have a lower rate of absenteeism and are better motivated,” he added. “We believe that this has a positive impact for businesses who can benefit from a more flexible workforce with a wider range of skills and abilities.”