Baroness Shirley Williams, a founding member of the Social Democratic Party, is set to receive one of the highest honours in the New Year Honours list.

Baroness Shirley, who stepped down as a Lib Dem peer earlier this year after 50 years in politics, is set to become a Companion of Honour. She worked as a cabinet minister and oversaw the growth of comprehensive schools for Labour in the 1970s before becoming one of the “gang of four” who formed the SDP.

Commenting on her award, Tim Farron, the Liberal Democrat leader, said: “Shirley is a liberal lion. She is a hero of mine and many, many others. She is a tireless and doughty campaigner for progressive politics. Britain is a better place because of her. Her determination created the enlightened comprehensive education system we have today.

“Shirley is also an inspiration for female politicians across the world. She is a trailblazer who has shown girls, like my own, that they can do anything they want to with skill, determination and passion.”

According to the independent awards committee, Baroness Williams, who became the SDP’s first elected MP, has been a “leading figure in British political life for over 50 years”. They add: “As Labour Education Secretary, she introduced the comprehensive school system and also served as Paymaster General. She later balanced her role as president of the SDP and then leader of the Liberal Democrats in the Lords with academic pursuits.”

Julian Brazier, a former minister and the Conservative MP for Canterbury, will also receive a knighthood alongside David Crausby, the Labour MP for Bolton North East, and Steve Webb, the former Lib Dem MP who worked as pensions minister at the DWP during the coalition years.

According to the committee, Mr Webb’s award was granted for his “significant changes to the pensions system, including introducing the "triple-lock" pension guarantee and a new and reformed state pension system, and implementing auto-enrolment into workplace pensions, a policy which has started millions of workers on the road to saving for their retirement. Previously professor of social policy at Bath University specialising in poverty, taxes and benefits, his work has had national impact.”

Several staffers at the Conservative Party have also received awards, including the director of fundraising and the director of campaigning at the party’s campaign headquarters in central London for “political service”.

Nicola Sturgeon, the Scottish First Minister and SNP leader, said the Queen’s honours list “provides richly deserved recognition” for those who have shown “outstanding service in their chosen fields and admirable dedication in their local communities”.