Financial experts have sounded a dire warning over the Labour government's plans for our pensions that could hit everyday Brits in their pockets.

Local government insiders have told the Daily Express that government pension 'pooling and consolidation' plans will end up costing people across the UK - many of whom may not even be members of the pension - millions of pounds.

Pooling was a Conservative pension policy involving the merger of assets belonging to the 86 funds in the Local Government Pension Scheme; the scheme collectively holds the retirement savings of 6.7million Brits who are or have been employed by local government.

The proposals, brought forward by the current government and part of the Fit for Purpose consultation, are aimed at reducing the costs involved in managing the investments as well as giving them the scale to invest in more risky long-term assets such as infrastructure and or UK start up companies.

At the Pensions and Lifetime Savings Association's annual local government conference in Bedford this week those involved with the LGPS voiced concerns over the merger plans which has a deadline of March 2026.

LGPS members spoke about the challenges of having to merge funds. Under the proposals government and regulatory approval needs to be given for a fund to set up as a superfund and take other funds under its wing. If it does not get approval it will need to merge with a fund that has got approval.

Jennifer Devine, head of Wiltshire pension fund, part of the Brunel Pension Partnership said it had not met the megafund criteria and would have to merge with another pool.

She explained the fund faced the expense and challenge of finding a home.

"This is going to be a really costly process for us as well, those 21 funds who didn't get the green light to go forward are being quite heavily penalized here.

"Really, there will be costs in leaving our pool. You can't move billions of pounds without spending millions of pounds. The understanding I have from speaking to the central government is that that's just on us. Those are on our costs, and we just have to weather them."

The Daily Express spoke to other delegates at the conference several of whom echoed Ms Devine's comments but did not go on the record.

One said: "When a fund doesn't get permission to go forward, and therefore has to merge with a fund that has then what happens is that you are effectively winding up a company, in order to merge with another."

"Think of all the costs involved in that, it's not going to be cheap and it could run into the billions of pounds."

Another delegate said: "It won't be the pension funds paying the costs, because these pensions are guaranteed to pay out, any cost will have to be met by central government which means the taxpayer."