SHEPPEY'S Labour MP Derek Wyatt has vowed to defeat the Government if ministers fail to amend the Pensions Bill to help workers who have lost their pensions.

Mr Wyatt wants the Government to provide compensation for former Allied Steel & Wire workers and thousands of others across the country who lost all, or most, of their company pensions when their firms went bust and the pension schemes were wound up.

Mr Wyatt said: "I am in touch with Number 10 nearly everyday on the issue of retrospective compensation and I have informed them that I tabled an amendment earlier this week.

"As I have said recently I expect a government statement before May, 18 or they will find that they will face their first defeat in the house as my amendment has cross party support."

Meanwhile an independent pensions actuary and leading pension expert say figures show the government can afford to compensate workers who have been left without all or substantial parts of their expected pensions when their companies have become insolvent.

The unions Amicus and ISTC commissioned the work which estimates that compensations should not exceed £76 million per annum over 30 years and may be as low as £50 million a year over the same period, falling significantly below all previous estimates.

The research has now been sent to the Prime Minister and relevant cabinet ministers.