The new UK Government is set to cut potentially tens of billions of pounds from the country's private-sector pensions bill, by altering the minimum amount by which they must raise their pensions payment in line with inflation each year. It mirrors a rule for public schemes outlined in last month's Budget.

The move follows a similar one contained in last month's emergency Budget, which will affect the main public-sector schemes. It is estimated that move will save the taxpayer between £100bn (€121bn) and £180bn over the next century or so.