Only 30 per cent of women receive the full state pension, according to a new government analysis.

In his last act as work and pensions secretary, David Blunkett published a major review on Wednesday.

It found that the current pensions system fails millions of women.

While the vast majority of women fail to receive full state pensions, 85 per cent of men do gain the maximum entitlement.

And more than two million women are not building up any entitlement to the basic state pension.

The discrepancy is being caused because many women earn too little or take time off work to look after children or relatives.

Women were also found to be less likely than men to have a private pension.

In a written statement, Blunkett said the government would put "fairer outcomes for women at the heart of our consensus for a long-term solution to the pensions challenge".

Opposition Response: Conservatives

Shadow pensions minister Nigel Waterson said the report "highlights some shocking facts about the state of women's pension provision in this country".

"We understood that this report would contain proposals for reform, but it seems that this troubled department has yet again stopped short of delivering a concrete agenda for action," he added.

"I hope the fourth secretary of state to run the department in 18 months will seize the opportunity to implement root and branch reform of our pensions system.

"We have been pushing for some time for the government to tackle the unfairness of women's pension provision."

Opposition Response: Liberal Democrats

Liberal Democrat pensions spokesman David Laws said: "The report highlights some huge challenges for the new secretary of state to tackle if fair outcomes for women and carers in retirement, now and in the future, are to be achieved.

"Unfortunately, there appears to be a strong bias towards maintaining the contributory system even though the evidence shows it is continuing to fail women and carers.

"Patching up the National Insurance system is not the answer - we need the clarity of a citizen's pension based on residency to deliver universal state provision."

Stakeholder Response: Age Concern

Gordon Lishman, Age Concern’s director-general, said: "This is a useful analysis but now is the time for action. The government has repeatedly admitted that women’s pensions are a national scandal but has so far failed to act.

"The government cannot be complacent about the situation for women and cannot assume that equality for women will be achieved by 2025. The gender pay gap is clearly continuing in the workplace; many women are in low-paid and part time work, and have limited access to an occupational pension.

"The current system is also desperately unfair, rigid and inflexible for anyone with non-traditional working patterns. We urgently need radical reform of the pensions system which puts the needs of women and carers at its heart.

"We need a more inclusive system that delivers a higher basic state pension and gives better access to second pensions for all. Unless the government acts quickly, future generations of women will be sentenced to a retirement in poverty."

Stakeholder Response: GMB

The GMB highlighted the need for fundamental reform of the UK pension system instead of the traditional reaction of politicians to tinker round the edges of the system on a regular basis.

Naomi Cooke, GMB pensions officer, said: "GMB members recognise the importance of having a living income in retirement; if a pension system is created that works for women it will work for everyone.

"Fundamental reform can start with a single step and the first move should be to abolish means testing and introduce a decent, earnings linked state pension for all. 

"GMB members know this, the public know this and Labour Party Conference knew this.  It’s time the government acted as its own party policy dictates." 

Stakeholder Response: ABI

Helen McCarthy, ABI head of pensions and savings development, said: "Reform of pensions for women should be a top priority for the Pensions Commission and the government.

"The ABI has put a number of ideas forward to address this. We particularly want to see periods of time spent caring for children or elderly relatives treated as paid employment when calculating a state pension.

"In addition, we need other measures to encourage and enable women to save more for their own pension.

"There is growing consensus behind these ideas and the government must grasp this opportunity. The facts are clear; now we need action."