Campbell told pensions to increase by less than £20

The projected increase would amount to a rise of less than 20 per cent over five years. The rise is set to be far outstripped by food and fuel inflation in the interim.

Last week Tom Vosa, chief economist for the Clydesdale and Yorkshire Banks, warned of potential double-digit increases in food prices by early 2011.

But Londonderry pensioners will be entitled to just 101.85 next April - an increase of five per cent - following changes implemented to tie pensions to earnings - and they will be entitled to just 116.20 - an increase of less than 20 per cent - by April 2015.

The Government also recently outlined plans to scrap the default retirement age of 65 in the UK from October 2011 in order to further slash the pensions bill. The message from Whiltehall is "work longer, claim less."

East Londonderry MP Mr Campbell pressed the Chancellor of the Exchequer at Westminster to estimate the change to the level of the state pension following the restoration of the link with earnings.

Replying to Mr Campbell's query on George Osbourne's behalf Pensions Minister Steve Webb advised that the state pension would rise from 101.85 in April 2011; to 104.50 in April 2012; 107.10 in April 2013; 111.30 in April 2014; and 116.20 in April 2015. He said these projected figures would take into account the effects of the Government's commitment.