Michael Howard is to follow his pledge yesterday to cut council tax bills for pensioners by promising to restore the pensions link with earnings, claiming the reform will be worth more than £550 a year for pensioner couples.

Mr Howard will woo the Tory-inclined grey vote when he publishes the pensions chapter of the party's manifesto, part of a stage by stage unveiling of the party's plans in advance of the election.

He will promise to take a million pensioners off the means test over the first four years of government. They would receive an extra £7 a week for a single pensioner, and £11 a week for a couple, over and above the increases generated by inflation.

The Conservatives broke the link with earnings in the 1980s, but claim a U-turn is necessary to prevent an extension of means testing.

The party claims 1.7 million of the 5 million pensioners subject to the current means tests do not even take it up with the take-up rate lowest amongst the poorest pensioners.

Mr Howard will also promise to abolish the requirement to purchase an annuity at 75, as long as the pensioner has an income high enough to avoid a means-tested benefit.

Labour said the Tory plans for cutting council tax would force authorities to increase council tax.

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