The government has outlined plans that will allow companies to discriminate in favour of female and ethnic minority candidates when recruiting.

The aim is to allow companies to choose a woman or ethnic minority candidate over a man or white candidate if the two have identical ability.

The Equalities Bill will also ban all age discrimination and will force public sector employers to publish the gender pay gap in their business.

Equality minister Harriet Harman said the new law would also bring all previous discrimination legislation into one act, reducing the burden of red tape on businesses.

TUC general secretary Brendan Barber welcomed the bill, saying: "This is a landmark piece of legislation which, if implemented fully, will help millions of people to reach their potential at work."