Government policy was dramatically shredded today after new secretary of state for business Peter Mandleson put the brakes on extending flexible working rights to children aged between 6-16 years.The extension was due to come into effect in April 2009, but has now been halted in order to help small businesses weather the economic storm.

The Chartered Institute of Personnel & Development (CIPD) have reacted with dismay at plans to shelve these rights.

CIPD chief executive Jackie Orme said: "This news is spectacularly ill-timed for hardworking families struggling to balance work and family responsibilities, and plan budgets that include substantial childcare costs."

She added: "Government assumes flexible working is a burden for businesses and a charitable extra that can be cut back in tougher times. The reality is flexible working can deliver competitive advantage by improving employee engagement and attracting talented people to organisations that otherwise might remain outside the workforce."

Orme argues employers need motivated part time and flexible workers to survive tougher times.

An estimated 811,000 parents were expected to request flexible working when the extension came into effect

Mandleson has also reportedly postponed an extension of paid maternity leave from 39 weeks to 52 weeks and the creation of an extra bank holiday.