Media reports suggest that the UK finance minister Gordon Brown is set to restore the link between wages and the state pensions that was abolished in the 1980s.
The move was a high profile tenet of the Turner Report into the reform of the UK pensions system, but the chancellor was apparently wary of implementing the change as it could prove too costly for the nation’s finances.
However as a groundswell of opinion has emerged in favor of restoring the link, Mr Brown is thought to be set to relent within weeks, with the increase in the retirement age for women from 60 to 65 years likely to pay for the link in part. The rise in retirement age for women will be implemented between 2010 and 2020.