There needs to be fundamental reform to the State Pension to prevent later life poverty from worsening as the pension age rises, a new report warns today.

The Government has corrected its initial guidance on underpaid State Pensions after a number of errors were spotted.

Former Pensions Minister Sir Steve Webb, now a consultant at pensions firm LCP, says that papers published alongside today’s Budget reveal a “mind numbing” £3bn repayment to underpaid women on state pensions.

The cost of reversing the increase in state pension ages could top £200bn, SIPP and platform provider AJ Bell has warned as the result of a High Court case is awaited.