THE Government is not doing enough to win over the "grey vote" by addressing the pensions shortfall, the chief executive of the North-East Chamber of Commerce (NECC) warned last night.

Ahead of today's Government report, which is expected to warn that people may have to work longer or save more to pay for the UK's £57bn pensions shortfall, George Cowcher said the Government should employ a two-pronged pensions policy.

The £57bn figure the Pensions Commission is expected to reveal today is nearly double previous forecasts.

The proportion of retired people in the UK, called the grey vote, is growing month by month and yet too few efforts are being made to ensure they can enjoy life after work, the NECC said.

It called on the Government to remove means testing from the state pension system, and to replace it with a flat-rate basic state pension, in order to provide an incentive for people to save.

It said more should be done to encourage smaller companies to contribute to pension schemes, as present legislation places a cost barrier at the door of smaller employers looking to invest in its workforce's retirement.

Mr Cowcher said: "The retired population is expanding to the point where the state pension cannot support it. The only solution is to encourage the existing workforce to save for its future.

"The Government must wake up to the fact that companies have a vital role to play in this issue.

"But business will only be able to actively participate if the shackles of tax are removed."

Pensions Secretary Alan Johnson has warned that the Pensions Commission's findings will present stark choices, but has ruled out tax rises.

He estimated that between eight and 13 million people are not saving enough for their retirement.