FORMER employees of Lister Petter who were facing a bleak future may have a glimmer of hope to ease the strain of the recent pensions crisis at the firm.

But, despite news of a cash injection into struggling pension funds, employees fighting for a fairer deal for those who have been affected are still planning to descend on London next month to rally more support.

Hundreds of past and present employees of the Dursley diesel engine manufacturer were left devastated after their pension fund folded in March with a deficit of around £10 million.

Employees who had left the company were told they would receive as little as ten-to-20 percent of what they were expecting on retirement due to insufficient assets after the company hit hard times.

But those affected are welcoming the news this week that the government is due to set up a £400 million fund to provide compensation for those who have lost their pensions.

Secretary of State for Work and Pensions Andrew Smith has this week added an amendment to the Pensions Bill that should help those 60,000 workers who lost their pensions.

Stroud MP David Drew, who has been in frequent discussion with employees, welcomed the development, saying:

"Workers at Lister Petter were shocked to discover when the firm went into administration that they would not see the pensions they had saved all their working lives for. I hope that this amendment will help them save in their retirement."

Mr Drew will take part in the debate on the amendment, which he said would be welcomed by the people of Dursley and district.

He added: "We need to make sure that those who have done their best to save for their retirement can be sure that those savings are safe."

Current employees are still determined to put pressure on the government to recognise the problem.

Lister Petter's Amicus representative Malcolm Cooper was this week organising coaches to take employees to London on June 19 for a high-profile demonstration to highlight the plight of people who have been affected by folding pension funds.

"The government has pledged £400 million," said Mr Cooper. "But as far as I am concerned that is nowhere near enough money. This amendment is a start and it recognises the fact there is a problem."

A delegation from Lister Petter will be meeting Minister of State (Pensions) Malcolm Wicks on June 27.

Mr Cooper said the delegation would be asking Mr Wicks to come up with a new plan to get the government to improve on the amendment.

"W e have nothing to lose," he said. 'The government has acknowledged the problem. Now we want MPs to realise that problem is bigger than they had realised."

BLOB The appearance of several advertisements on the Lister Petter Ltd website are being taken as a sign that the company, now under new ownership, is entering a new phase.

A company spokeswoman said they had attracted a lot of interest.

"We have put adverts on our website recruiting in key areas and we have had a considerable response to them," she stated. "The process is in its early phase and no appointments have been made."