Will Tony Blair radically overhaul the welfare state?

A radical third-term overhaul of the welfare state was signalled by Tony Blair on Monday as he set the stage for Tuesday's long-awaited report from the Pensions Commission.

The prime minister underlined his determination to tackle employment, pensions and benefits while extending choice and diversity through an "opportunity society".

Stakeholder Response: Help the Aged

Mervyn Kohler of Help the Aged said: "The prime minister's speech on the opportunity society had no detail on the future direction of pension policy. That is being left to the reports tomorrow and next year from the Pensions Commission. These, with tomorrow's focus on where things are going wrong with our present pensions systems, will be helpful, but the whole process is being conducted at a leisurely pace when the problems are serious and worsening.

"Something from the prime minister today more than the observation that 'decisions taken today may take decades to mature' would have signalled the government's appreciation that confidence has drained from our pension systems."

Stakeholder Response: Age Concern

Gordon Lishman, director general of Age Concern England, said: "The current system of voluntary private savings and low state pensions is not working. One in five of today's pensioners live in poverty, and millions of tomorrow's pensioners face hardship in retirement due to under-saving.