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If it does not bring forward its own measures it will be defeated in Parliament and it

If it does not bring forward its own measures, it will be defeated in Parliament and it will not get any credit for it.”A spokesman for the trade union Amicus said yesterday: “The silent army is on the march. They fear MPs would then refuse a request by the Government to overturn the Lords’ decision. If it refuses, it could face a rebellion bigger than on the Iraq war, on which 121 Labour MPs voted against the Government; university tuition fees (72) and foundation hospitals (62). Mr Brennan said: “If the Government does not commit to some sort of help, I will table an amendment to the Bill at its report stage and there will be a lot of support for it.”Government whips are worried that, even if the Pensions Bill survives the Labour revolt in the Commons, the House of Lords is almost certain to vote for compensation. But it will not be retrospective and will not help anyone already suffering.The Bill is to reach its report stage this month and the Government has until then to decide whether to provide compensation.

A total of 291 MPs have signed the motion, 203 of them Labour.The Government has recognised the need to change the law and a Bill is going through Parliament to ensure the situation is not repeated. The measure will create a pension protection fund to bail out pension funds that go bust. Kevin Brennan, Labour MP for Cardiff West, has been leading a “quiet rebellion” in the Commons that now looks certain to shake the Government. He has tabled a Commons motion calling for workers who have lost their pension to be compensated. The current law guarantees full pensions only for those who have already retired.Political support for compensating these workers is mounting. Some of the workers had paid in to their company schemes for 40 years only to be left with 10 per cent of what they had expected in retirement.

Some people will get nothing from their pension fund.Many of those affected worked at Allied Steel & Wire, Dexion and United Engineering Forgings, which all became insolvent recently. Tony Blair is facing the biggest backbench revolt since he became Prime Minister over the Government’s refusal to help up to 60,000 workers left with a fraction of their pensions after their companies failed. Fines can reach up to £5,000 per illegal worker, a ceiling that may be abolished.. She also called for independent statistics.The Institute for Public Policy Research, a think-tank with close links to Downing Street, urged Mr Blair and Mr Blunkett not to get “swallowed up by anti-immigration hype”.The Home Office minister Baroness Scotland announced yesterday that gangmasters face steeper fines for employing illegal workers. He added: “We want real action, not headline-grabbing stunts.”Barbara Roche, a former immigration minister, said the Home Office should lose its power to decide asylum cases, which should be resolved by an independent body. It said the Home Secretary would drive the programme in between the meetings chaired by Mr Blair.An “action plan” is expected to be drawn up after today’s session, which will be attended by several ministers and security and intelligence chiefs.

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