Frank Field details "the biggest reform facing the government"

Under his proposals, Mr Field plans to secure a pension of 30% of average earnings for all.

Speaking to BBC News Online, the former minister warned: "You don't get pensions cheap, there will need to be more money put aside if pensions are going to be adequate."

Encourage saving

He said his Bill aimed to encourage saving by the poorest members of society with the hope of banishing the attitude that "when you retire the taxpayer will pick you up".

But he added: "The aim is to give a guarantee of a pension of 30% of average earnings on the day that you retire. The state pension is currently is valued at 15%, so it's twice of what its currently valued.

"But the current value is one which is falling. In 20 years time it is only going to be worth about 8% [of average earnings] so this scheme ensures that not only is that difference made up but it actually going to be twice the value."

The proposals would be funded though National Insurance contributions and by establishing a new funded scheme sold by Approved Welfare Suppliers.

The Bill will set out the criteria for the approved suppliers which Mr Field envisages will be employers, trade unions as well as some existing insurance firms.

Mr Field resigned from the government during the July re-shuffle after failing to gain a Cabinet post.

Reform agenda

While a minister he had been given the task for setting a radical agenda for welfare reform, including "thinking the unthinkable" but resigned after little headway was made with his proposals.

Speaking of the government's reactions to his Stakeholder Pensions Bill he said: "I hope they will be able to observe that from the election onwards that there was a vast majority of people in the country who actually want this government to tackle seriously and radically welfare reform, and that there will be serious constructive support for this sort of measure making it safe for the government to move in behind it."

The current Social Security Secretary Alistair Darling is expected to lay out the government's own proposals on pensions by the end of the year.

'Pensions are the big issue'

Explaining why he had decided to tackle pensions first Mr Field said: "Pensions is the biggest single reform facing the government.

"It is the reform you have to think over the longest period of time. Here we are talking about 40 to 45 years for the scheme to come to maturity.

He added that if it is done properly it will "most effectively disrupt the supply route to poverty and the underclass".

"Over the long term it will ensure that all of us have an adequate pension when we retire and that can only be achieved if we put more money into pensions."

The scheme will kick off by bringing in all those in work at their twentieth birthday, older people will be able to buy past years.

Under the plans, which are self-financing, contributions will be paid for those not able to work as they are caring for children under five and those caring for the severely disabled.