The Department of Work and Pensions has this week launched the pensions credit.

However, research published by the Institute for Fiscal Studies has concluded that while it will increase support for many low and middle income pensioners it is unlikely to encourage retirement saving.

Steve Webb, pensions spokesman, said: "Pensioners across the country should be bracing themselves for a winter of discontent.

"Tax credits were a disaster. With more people expected to ring the phone lines and less staff to help, the pension credit is set to be a shambolic sequel. The government has not learnt from previous mistakes.

"For all this complexity, the government would better serve pensioners by increasing the pension, especially for older pensioners who are often the most needy."

Forum Response: Age Concern

Gordon Lishman, director general of Age Concern, said: "The pension credit will be a welcome boost to many of the poorest older people - but first it must reach their pockets.

"We are pleased that all Minimum Income Guarantee recipients have been successfully transferred to the pension credit.

"The challenge is now on to get the savings credit to the two million households who are entitled for the first time.

"Special measures must be taken to get this cash to the hardest-to-reach older people including those who are housebound and ethnic elders who do not use English as a first language."

Forum Response: Help the Aged

Mervyn Kohler, head of public affairs for the British Gas Help the Aged Partnership, said: "It is unacceptable to have so many pensioners missing out on benefits that they are entitled to.

"The government's pension credit initiative does not go far enough to address this large scale problem and will consequently fail to distribute hundreds of millions of pounds to pensioners."