The Department for Work and Pensions has been told to scrap a benefit claimed by 1.4 million people. The Tony Blair Institute (TBI) think tank has urged the DWP to scrap pension credit and remove the state retirement age.

Under the TBI’s Lifespan Fund, there would be no official retirement age. People could instead choose when to take their pension, which would remain guaranteed for life and be provided by the state.

The amount they receive would vary based on their contributions, age, health and life expectancy, similar to the way pension savers are offered an annuity.

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But the triple lock would be removed and pensions would only rise by the median level of earnings.

Tom McPhail, a freelance pensions expert and scheme trustee, said: “These proposals are a good start and a flexible state pension that helps meet people’s needs before retirement, and encourages later working, is a good idea in principle.

“However, we can’t think about the state pension in isolation. We also have to think about how it interacts with pre-retirement welfare and private pension savings.

“This needs to happen soon because the triple lock is unsustainable and without state pension reform, younger generations will miss out completely when their turn comes.”

The current state pension will hit 67 by 2028 and 68 by 2046 under moves set in motion during Sir Tony’s time in Downing Street, but accelerated in 2014 under the Conservatives.

State pension spending hit £146bn in 2025-26 and is forecast to exceed £172bn a year by the end of the decade.

This year, under the Triple Lock, the new, full state pension payment rates were hiked, reaching £241.

The move means state pensioners receive over £12,000 from the DWP each year, if they’re of state pension age, which is 66, so born before 1960.