The restricted remit of the new Pensions Commission will limit its ability to deal with the scale of the problem, according to LCP partner and former Pensions Minister Steve Webb.

He said the fact the ‘Triple Lock’ policy on the state pension and the taxation of pensions were not in the scope of the Pensions Commission review will make it very hard for the Commissioners to map out a blueprint for the future of pensions.

Liz Kendall, Work and Pensions Secretary, said at the launch of the Pensions Commission that the long-term commitment to the Triple Lock on pensions is not in its remit.

She said: “The Triple Lock is out of scope of the commission. We’ve got a very clear commitment to that for the entirety of this Parliament.

“And what we’re asking the commission to do is genuinely look medium to longer term, the middle of this century, and how the state pension and second pensions work together.”

Steve Webb said: “The Government has chosen its commissioners well. They are excellent, respected and knowledgeable people who will no doubt do a first rate job. But they have had one hand tied behind their back from the outset."

The Pensions Commission will be made up of Baroness Jeannie Drake, a member of the original Commission, Sir Ian Cheshire and Professor Nick Pearce, who will be responsible for steering its work.

Mr Webb said: “Central to any plans for the future of retirement incomes is a view on how the state pension will contribute, yet they have been told they are not to comment on the future indexation of the state pension and the triple lock policy in particular.

He said another key lever available to government is to use pension tax relief to incentivise pension saving and to do more to support under-pensioned groups. "But despite having a Pensions Minister who is also in the Treasury, the review is not being asked to look at pension tax relief.”

On a day when the Government admitted that the number of people under-saving for retirement has soared by two million in just two years, the need for a comprehensive review has never been greater, Mr Webb said. “The tight remit of this review represents a missed opportunity.”

Figures published by the DWP showed that in just two years the number of people estimated by the government to be not saving enough for their retirement has gone up by 2m from 12.5m in the 2023 report to 14.6m in the 2025 report published on Monday.