The UK's £4.5bn Pension Protection Fund, which bails out retirees if their former employers go bust, said the government's proposed change to a key inflation metric could increase its chances of beating its long-term funding target - and reduce the charge levied on companies to pay for its upkeep.

The PPF said yesterday it plans to reach 110% solvency by the year 2030. The overfunding is aimed at providing a buffer in case pensioners live longer than expected, or more companies go under than currently predicted.