Saga holidaymakers face the prospect of sharing Mediterranean cruises with the 18 to 30s crowd, under changes to discrimination law.

The company has been offering sedate overseas cruises and foreign coach tours exclusively to the over50s for years. But legislation banning all discrimination in the provision of goods and services – including on ground of age – means that it may have to open its doors to all comers.

Ministers will publish their plans for the Single Equality Act, a manifesto commitment designed to end discrimination in all its forms, next month.

Saga has been told that the law would require it to offer all cruises, resort and touring holidays and numerous financial products to everyone irrespective of age, unless ministers make some services exempt.

The Government’s push to outlaw all discrimination has already caused friction with the Roman Catholic Church, which said that it was not prepared to allow its adoption agencies to enrol gay couples. The Government responded by giving the Church more time to prepare for the change.

Saga has warned ministers that the company will go under unless it can restrict its services to the over50s. Company insiders said that ministers seemed not to have considered the effect of the law until it was pointed out to them.

Ministers said that they were prepared to consider Saga’s request for special treatment.

In a memo sent to them, and seen by The Times, Saga states: “We fear the unintended consequences of such legislation might be to subvert our cruise and holiday business, and our financial services business, whilst causing great collateral damage to our brand.

“One must also question whether Saga as a business could survive if it is forced to abandon its ethos, its branding so painstakingly built up, and to suffer the inevitable perturbation of its local customer base.”

Cruise holidays would suffer most if no exemption was granted, with the over50s unlikely to pay to travel on cruise with young people.

The vast majority of Saga’s revenue comes from insurance policies and other financial products, rather than holidays. Paul Green, Saga’s communications chief, said: “There is a danger from blunderbuss legislation. It could bring to an end older people enjoying discounts on their fish and chips, or cheaper care insurance.”

Saga has already felt the force of age discrimination legislation. Last year it was forced to scrap a new employment agency for the over50s when prospective employers said that they would not be able to use it for fear of breaking age discrimination laws. The Department for Communities and Local Government, which is drawing up the Single Equality Green Paper, said that a “common sense” approach was being taken.

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