Pensions secretary Andrew Smith

Andrew Smith has warned employers they face tougher rules to stop them "short changing" pensioners.

Addressing the Labour conference, the pensions secretary pledged that bosses would not be able to break their "pension promises" to workers.

"We condemn those who walk away from their responsibilities," he told delegates.

Smith added that employees should not be "short changed" and "dumped" in retirement by the companies they had worked for.

"A pension promise made must be a pension promise honoured," he added.

The Cabinet minister pledged to introduce new legislation to stop employers walking away from their obligations, using take-overs to scrap pensions and changing pension schemes without consultation.

And he revealed that pensioners who defer their take up of the state pension for five years will be given lump sum payments of up to £30,000.During the conference debate on pensions, USDAW general secretary Sir Bill Connor warned that "many companies" were reducing or ending their pension contributions.

Calling for a "level playing field", he said companies that cut contributions would enjoy a competitive advantage over those that didn't.

GMB general secretary Kevin Curran said that workers and companies should both be compelled to make pensions contributions.

"It's a difficult decision, but we have to grasp the nettle," he said. "Only compulsion can solve the pensions crisis and lift our people out of poverty."

Tony Woodley, incoming head of the TGWU, called for action "not just reviews" to tackle the crisis.