Lord Hutton's report called for all but a handful of public sector pensions to include a retirement age of 65. GPonline.com reported this week that many GPs could quit if they are forced to work longer for a full pension.
In the 2011 Budget the government said it will now ask public sector workers, trade unions and others for their views on Lord Hutton’s recommendations.
It said the government will then set out its proposals in the autumn, which it said would be ‘affordable, sustainable and fair to both the public sector workforce and the taxpayer’.
Mr Osborne said: ‘John Hutton has now completed his final report, which looks at the pension benefit. I am sure members in all parts of this house will want to thank him for a very impressive piece of work.
‘I confirm today that the government accepts Hutton’s recommendations as a basis for consultation with public sector workers, unions and others. There should be no cherry-picking on either side.’
Meanwhile, Mr Osborne also announced plans that all NHS workers earning £21,000 a year or less will receive a pay uplift of £250.