The government’s consultation on proposals to boost retirement saving, which includes plans to make company schemes compulsory, were blasted by Steve Webb, the Lib Dem pensions spokesman.

“Consultation documents are not enough. Action is needed. The government is failing to grasp the urgency of the pensions crisis and twiddling its thumbs while pensions burn,” Mr Webb asserted.

“People were not saving enough when the government came to power, but in the last 7 years the savings gap has become a chasm.”

He called for the pensions system to be simplified arguing that its present complicated nature put many off saving.