Leaders of both US political parties called for reform of Social Security and Medicare on Tuesday as a report showed that the benefit programmes were on course for bankruptcy sooner than previously expected.

The economic recession has increased pressure on both schemes as rising unemployment cuts into tax revenues while leaving more people dependent on benefits. Medicare, which provides health insurance for the elderly, is on course to run out of money in 2017, two years earlier than previously estimated, based on the latest projections for revenues and pay-outs.