The coalition''''''''s commitment to higher spending on the basic state pension and national health service means government has no option but to hold firm on public sector pension reform, a pro-market think tank claims.

The report, Old and broke, published by Reform says such spending, combined with the fastest growth in the pensioner population this century - set to rise by some 1.4 million people between 2011 and 2016 - means the government should also resist calls from the Dilnot commission to increase long-term care expenditure.