STEELWORKERS who lost out on pensions worth millions of pounds have been offered a glimmer of hope today.

The Financial Conduct Authority will begin preparing a consultation on a redress scheme for workers left out of pocket by the British Steel Pension Scheme (BSPS).

Thousands of steelworkers are victims of the scandal, having fallen prey to rogue financial advisers when making a final decision on their pension options. An estimated 85 "pension sharks" are believed to have been involved.

The FCA said it would now consult on a redress scheme based on the BSPS transfer advice that had been given to steelworkers. It called the scandal a "highly exceptional case" with nearly half the advice (47 per cent) given to workers deemed "unsuitable".

Once the FCA board has approved the move, a consultation could be held as early as March 2022.

Nick Smith, the Labour MP for Blaenau Gwent, has been campaigning on behalf of BSPS victims.

He said: "This scandal broke four years ago now and affects nearly 8,000 families across the UK – it is high time that the regulators got a grip on it and the firms responsible.

"It has been a long struggle to get to this point and there should be no further delays to putting this injustice to bed for steelworkers and their families."

However, Mr Smith said he still had some concerns regarding the FCA's plans.

"I appreciate that the FCA has told firms that they must be transparent and not bury their money away during this consultation, but I am concerned that it appears IFAs (independent financial advisers) are being asked to mark their own homework," he said.

"IFAs are being asked to assess the quality of their own advice and calculate compensation using guidance which could provide room for interpretation in their own favour. 

"I would also challenge the narrow time frame the FCA has proposed so that no steelworkers are left out.

"I will be pursuing this again with the regulators in the New Year."

The FCA recommends that former BSPS members should continue to check whether they received unsuitable advice and find out how to complain at fca.org.uk/bsps