WORKERS at the former Carpets International factory in Crumlin who were last year hit by a 2 million pensions crisis received a boost yesterday.

Staff were left devastated last December when they discovered that those who paid into their scheme - the Abingdon Carpets scheme, which took the previous name of the site - could lose 61 per cent of their pensions.

But yesterday, it was announced that those closest to retirement are guaranteed government help to get 80 per cent of their pension if the scheme qualifies for government assistance.

The firm at Pen-y-Fan industrial estate, Crumlin, had gone into receivership in August 2003, but the 300 jobs were saved in a buyout deal led by the firm's managing director Jim Taylor.

Although they are delighted their jobs are being saved, the workers' pension scheme was wrapped up because of a 2 million deficit due to a poorly performing stock market.

Under the announcement from the Department for Work and Pensions, eligible workers who are three years or less from retirement on May 14, 2005, should be able to get 80 per cent of their core pension after direct payments from the government.

The Abingdon Pension Scheme has now been included in a list of schemes potentially eligible for help under the government's Financial Assistance Scheme.

Islwyn MP Don Touhig said: "There is still some way to go but I am delighted we have taken this step forward.

"There can be no guarantees yet, but today's announcement means the oldest members of the schemes can plan for their retirement with more confidence than before."