The Government could ride to the rescue of millions of civil servants who stand to lose inflation-linked pension increases under the new state pension rules applying from April. Private sector pensioners in the same quandary are unlikely to be helped.

Under the new pension regime, around seven million people employed across both the public and private sector will see some reduction in retirement income due to the loss of valuable index-linking on final salary benefits built up in the eighties and nineties.

Since 2012, when the new pension was still in planning stage, Government officials have known that around three quarters of those workers who chose to “contract out” of their pension schemes in the eighties and nineties would lose some element of index-linking. Apart from in these pages, little has been done to warn those affected.

• Male and aged 51-55? You may lose £20,592 under the new state pension

But with less than five months to go until the new scheme is in place Telegraph Money has discovered the Treasury may reinstate this so-called “future proofing” for public sector workers.

According to rules dating back to the Seventies, the Government still has an obligation to index-link the pensions of public sector workers and people who work for private firms where these are contracted to work for the Government.

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