Radical pension reforms are being prepared by the Government to help millions of savers get better returns, The Sunday Telegraph has learnt.

Ministers across Whitehall are working on schemes to get pension funds investing in building projects ahead of the Chancellor’s Autumn Statement.

Energy projects such as nuclear power stations, railway schemes including HS2 and new broadband roll-outs are most likely to benefit.

It is seen as a “win-win” because savers would get a good return on investments in difficult circumstances while funding a new infrastructure drive announced by Philip Hammond, the Chancellor.