FORMER Newport pre-fab tenants who have moved into their new bungalows are losing out on a potential £1,600 windfall because of a change in the law, the Argus can reveal.

And the government say it is simply a case of "bad luck" for tenants already in their new properties.

The government recently announced that the Home Loss Compensation threshold is to rise from September from £1,500 to £3,100.

The cash is available to all tenants from the prefabs whose homes were compulsorily purchased for the redevelopment programme.

But despite the change in the law coming in the middle of the city's five-year prefab replacement scheme, the government has said those who have already moved in will not receive any extra payment.

"We do have sympathy for those who have lost out," said a spokesman for the office of the deputy prime minister.

"But there is no question of the payments being back-dated. Unfortunately, it is bad luck.

"When there is a change in the law like this, unfortunately there will always be some people who lose out."

But local politicians and residents' associations are calling for the National Assembly to examine whether or not the payments can be backdated.

Bryn Davies, who lives on the Treberth estate, said: "We would like to fight for those people who received the old payment of £1,500 in order for them to receive a further payment."

And Newport East AM John Griffiths said: "I have written to Carwyn Jones at the Assembly to ask whether he can look at backdating the payments.

"The Assembly has passed secondary legislation on this, so it will be the minister's responsibility.

"These people have gone through the same stressful upheaval, and it only seems fair that they receive the same amount."

Phil Toms, the director of Newport Housing Trust, said: "We agree and support the thinking, but we are unable to influence government thinking."