Tony Blair and Gordon Brown have struck a deal on the future of the pensions system.

The prime minister and the chancellor have agreed to follow Lord Turner's recommendation to restore the earnings link to the basic state pension.

However, the introduction of the more generous pensions system will not come until 2012 to make it more affordable.

The final plans for reform of the pensions system are due to be published on May 22.

A Number 10 spokesman said: "We can confirm that we believe we have reached a deal.

"We are pleased with the progress we have made. There are still going to be some details that need to be finalised."

He said that it "looks like it will be linked to earnings".

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