Town hall pension schemes in London are a 'ticking timebomb' that could cost taxpayers millions of pounds due to years of poor governance by trustees and the government, a new report by the Pensions Institute has claimed.

The study calls for an urgent review of the 34 schemes – the majority of which are said to have 'fundamental flaws' in their investment governance - and of the DCLG oversight procedures after it showed 'shocking complacency' by ignoring the problem for years.