PEOPLE who face losing thousands of pounds in the APW Electronics pensions scandal were offered a glimmer of hope after a meeting with ministers yesterday.

Pensions ministers Malcolm Wicks said the "door was not closed" on devastated current and ex-employees being protected under the government's Financial Assistance Scheme (FAS).

Currently, pension holders from the Chandler's Ford firm could only recoup some of their money from the scheme if the company, which is based in Wisconsin, USA, became insolvent.

Eastleigh MP David Chidgey said there was no sign of a magic wand being waved by Mr Wicks, who, during a meeting lasting one hour 15 minutes with ex-employees and MPs, pledged to study the issue.

Allen Beard, chairman of the APW Pensions Group, said he was "a little disappointed" he had not promised to take tougher action against the firm.

He said: "The minister did not give anything away. He was sympathetic to our position and the special circumstances but he was non-committal."

The meeting was secured by Liberal Democrat MP Mr Chidgey, whose Eastleigh constituency includes APW, and attended by John Denham, MP for Southampton Itchen, Sandra Gidley, MP for Romsey and Julian Lewis, New Forest MP.

Mr Chidgey said after the meeting: "We hoped to persuade the minister and his advisors that workers who find themselves in the position of APW staff can turn to the government scheme for help.

"There needs to be some flexibility. We are determined to do whatever we can to bring an end to this injustice."

Mr Lewis told the minister APW had "blackmailed" workers by threatening to close the factory in Electron Way if they did not sign up to an "oppressive deal" which cost them up to 80 per cent of their pensions.

He said: "Malcolm Wicks was extremely reluctant to do anything to help workers whose company had not gone into insolvency."

Last month, the Daily Echo revealed the value of APW pensions had plummeted, meaning staff expecting £20,000 a year could receive just £4,000. Staff were left devastated and facing an uncertain old age after bosses revealed a £55m black hole in the pension fund.

The MPs said it was vital to ensure employees were covered by two government compensation schemes aimed at protecting those unwittingly caught up in a pensions crisis. Trustees for APW had the pension fund wound up in the High Court.

The legal step prevented the firm from going into insolvency. But it meant 1,259 workers and retired pensioners lose all but a fraction of their pension.

It has been calculated that the scheme needed APW to pay in £1.5m a year to get back within its legal obligations inside ten years.

APW Electronics declined to comment on the meeting.