STEELWORKERS who lost their hard-earned pensions following bad financial advice are being let down by "bureaucratic inertia," say campaigners calling for renewed support.

Two Welsh MPs - including Blaenau Gwent's Nick Smith - have written to the new head of the Financial Conduct Authority (FCA), urging him to take a leading role in holding to account those responsible for the steelworkers' plight.

More than 7,000 steelworkers are victims of the British Steel Pensions Scheme (BSPS) scandal.

Three years ago, steelworkers were asked to make a final decision on their pension options.

But Mr Smith said many workers were "unsure" of their options and turned to financial advisers for advice - leading to "pension sharks fleecing many hardworking steelworkers," he said. The compensation owed to the victims is estimated at £250-375 million.

"The FCA’s actions fall far short of what is needed to tackle this crisis," wrote Mr Smith and Aberavon MP Stephen Kinnock in their letter to FCA boss Nikhil Rathi. "The steps taken have been disorganised and lacking in urgency."

Mr Kinnock said the scandal was "a heartbreaking story," in which steelworkers continued to be let down by the "abysmally poor performances of regulators".

On Thursday, a solicitor working alongside the MPs said there was "nothing to suggest the bad actors had been removed and prevented from advising people".

An estimated 85 "pension sharks" are believed to have contributed to the scandal. Al Rush, an independent financial adviser who is supporting the victims, said the pension sharks' conduct "reflects badly on thousands of good organisations" offering workers advice.

He said the victims had been "bamboozled beyond belief" by the rogue advisers.

One steelworker told the MPs he felt "as though he had been mugged".

Another, from Port Talbot, said he feels "let down completely by the regulators".

Mr Smith and Mr Kinnock called on the FCA to set up a redress scheme for the steelworkers who left the British Steel Pension Scheme - or BSPS - as well as stepping up enforcement "to hold bad advisers to account".

They also called on the FCA to meet with the victims and "properly engage with those affected".

"Time is running out for the victims of this scandal, and it is now vital that the FCA use the full strength of its powers to take widespread action," the MPs wrote.

An FCA spokesperson said: “We thank Mr Smith and Mr Kinnock for their letter, and will respond soon.

“We have undertaken a number of actions designed to help those who transferred out of BSPS. This includes writing to 7,700 former BSPS members to help them revisit the advice they received, and to complain if they have concerns. We have also held events in Port Talbot.

“We have several investigations ongoing into the advice that was given at the time. We have banned contingent charging in most circumstances to remove the conflicts of interest which arise where a financial adviser only gets paid if a transfer goes ahead.”