Pension reform still on, says PM

Gordon Brown is reported to have queried plans in the forthcoming Turner report to link pensions to earnings and raise the state pension age.

Mr Blair said the pensions issue was one that had to be dealt with.

"Like anything it will be difficult; there will be difficult decisions involved," he told the BBC.

Looming

The Turner commission, headed by former Confederation of British Industry boss Lord Turner, is intended to provide a long-term solution to Britain's looming pensions crisis.

There have been accusations from the Conservatives that Mr Brown has been trying to "sabotage" the report in advance of its publication.

Mr Blair said both he and the Chancellor and had asked for the report.

"Of course anything that we consider as a Government has to be affordable, it has got to be within the limits of prudent financial constraints," he said.

'Solving things'

But he added: "It is better to be in politics solving these things than ducking them."

He said any decision would be a government one, and would be taken on a consensus basis.

In a leaked letter to Lord Turner last week Mr Brown rejected plans for a more generous state pension - linked to average earnings - and a rise in the retirement age to 67.

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