Elderly people would have the right to join youth clubs or go on 18-30 cruises under new equality legislation to be introduced this week.

Ministers are to give pensioners new protection against age discrimination. The law would stop insurance companies, 95% of which impose an upper age limit, refusing life insurance or holiday cover to senior citizens or charging more on the basis of their age.

The new law would give teenagers the right to join clubs that have traditionally been the preserve of the elderly, while middle-aged clubbers could not be refused entry to a nightclub on the basis of age alone.

Gordon Lishman, director-general of Age Concern, said: “People are often surprised to learn that ageism is the most commonly experienced prejudice in the UK. But both young and old find they come up against barriers created by their age. People over a certain age pay a huge premium on insurance just because of their age. They can also be denied certain types of health treatment because doctors don’t think it is worth treating them. This is unfair and unjust.”

The Single Equality Bill will also offer new protection to gays and ethnic minorities. Public bodies will have a duty to promote equality while schools will have to develop strategies to prevent gay bullying.

The bill is expected to stop short of demanding that companies introduce compulsory pay audits that would reveal whether men and women of equal experience and seniority are paid the same, after opposition from business. Less stringent measures to improve transparency on equal pay are to be introduced.

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