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The Liberal Democrats have accused the government of betraying more than one million older women over its pension credit for savings and other income.

The "savings credit" element of the scheme for pensioners is available only to those aged 65 and over and their spouses. It is aimed at allowing pensioners with low or modest savings or incomes to retain their benefit entitlements.

But Liberal Democrat MP Steve Webb said 377,000 single retired women aged between 60-64 and 670,000 women of the same age who are married to men under 65 would not be eligible for the pensions credit due to be introduced in 2003.

Webb said: "This is yet another example of how a complex government pension scheme will fail to achieve its aims. We find that women pensioners under 65 will be excluded from the scheme. They will want to know why they will have to wait five years before they can benefit from the new scheme.''

Work and pensions secretary Alistair Darling replied: "It is rubbish to say that women will lose out as a result of the pension credit. We are required by law to treat men and women the same way. Sixty-five is the first point at which the state pension is available to both men and women, so this is the earliest point at which the savings reward can be paid without discrimination.''