TONY Blair faces a pensioners' revolt on Wednesday as 85-year-old Baroness Castle leads a challenge to his policy an state help for the old.

The former Cabinet Minister has made clear she regards his promise to set up a commission to look into pensions as a "fudge" which she will have no truck with.

With the backing of the Labour Left, she is insisting that the leadership remains committed to restoring the link between pensions and average earnings instead of prices.

She is also calling for the restoration of the State Earnings Related Pensions scheme as market leader and benchmark for the private pension industry.

Last night, frantic behind-the-scenes wheeler dealing persuaded Labour's national executive to adopt the plan for a standing commission into pensions and other benefits for the elderly to guide the policy of a Labour government.

Despite the opposition of NEC members Dennis Skinner and Diane Abbott, the compromise won the backing of former Transport Union leader, now president of the National Pensioners Convention, Jack Jones.

But it did not placate former Blackburn MP Lady Castle, who wants angry delegates to force the issue to a vote bringing the very real prospect of a conference floor defeat for the leadership.

She said: "We must change direction because the Tories have been destroying the basic state pension and substituting means testing."

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