State Pensioners have been warned of a potential changes to the system. Pensions minister Torsten Bell talked at the annual investment conference in Edinburgh about “tough decisions” having to be made. He hinted that officials will have to “integrate thinking about both state and private pensions”.

Mr Bell added voters were concerned about their wages, hospitals “not working”, and “potholes on the roads”. The minister said the Government needs to “make sure we can start doing the basics again, an economy that grows, wages that rise, public services that function”. Change to the State Pension, Mr Bell suggested, would be “an economic risk”. “But,” he added, “I’ll tell you what the economic risk is, us not doing these things.” Ministers need to roll out the change “that was needed”, he believes. Chancellor Rachel Reeves confirmed in her Budget in October plans to maintain the State Pension Triple Lock for the duration of this Parliament.

The document added: “The basic and new State Pension will increase by 4.1% in 2025-26, in line with earnings growth, meaning over 12 million pensioners will receive up to £470 per year.”

The Government is expected to roll out welfare reforms, as the Prime Minister Sir Keir Starmer warned Labour MPs they could not “shrug our shoulders and look away”.

He added he was “not afraid to take the big decisions” to “fix what is broken”.

Ms Reeves is expected to slash spending by billions of pounds to address tight economic headroom in the Spring Statement.

Speaking at a meeting of the Parliamentary Labour Party, Sir Keir said: “We’ve found ourselves in a worst of all worlds situation – with the wrong incentives – discouraging people from working, the taxpayer funding a spiralling bill, £70 billion a year by 2030.

“A wasted generation, one in eight young people not in education, employment or training, and the people who really need that safety net still not always getting the dignity they deserve.”