The Government set itself on a collision course with hundreds of thousands of public servants today after proposing radical changes to their pensions.

Union leaders vowed to "vigorously oppose" the plans, which included replacing the final salary scheme and increasing the pension age from 60 to 65.

Public sector unions have warned they could not rule out industrial action.

The Government insisted the changes were "good news" for most of the UK's 617,000 civil servants, especially those on lower pay or workers who had taken a career break.