..NOW PAY UP; Workers win court battle over advice on pensions 'This Government has been caught red-handed in an act of constitutional vandalism intended to deprive many thousands of working people of justice'.

Byline: By CLINTON MANNING, Business Editor

FOUR men won a landmark court victory for the 85,000 victims of collapsed company pensions yesterday which could cost the Government pounds 4billion.

The ruling puts Tony Blair under intense pressure to compensate workers who lost their nest eggs when their firms went bust.

The four crusaders - Henry Bradley, Bob Duncan, Andrew Parr and Thomas Waugh - had argued Government literature misled them that their company pensions were safe.

Yesterday the High Court backed their claims and declared the Government's denial of any wrongdoing "irrational".

But ministers were today already considering whether to appeal against the ruling.

Solicitor John Halford, of Bindman & Partners which represented the pensioners, said: "The Government has been caught red-handed in an act of constitutional vandalism intended to deprive thousands of working people of justice."

And pensions expert Ros Altman blasted: "The Government's behaviour all along has been shameful and heartless.

"It's focused all its efforts on denying its role in this affair, rather than owning up to its mistakes and organising a proper rescue."

The four men were originally snubbed by the Government - despite a Parliamentary Ombudsman probe which found it guilty of maladministration and that it should pay up.

But Mr Justice Bean yesterday said the information provided to pensioners lulled them into a false sense of security and was misleading.

And he stressed it was "no answer" for ministers to say the public knew there were risks and that there was "no certainty in life".

Jean Wade, 59, who was robbed of her late husband Bernie's pension when his firm went bust, said she was elated by yesterday's ruling but "deflated" by suggestions of an appeal.

The widow, of Gosport, Hants, hit out: "It's time they stopped trying to wriggle out of their responsibilities. This is making people ill and destroying families."

Ex-steel worker Joe Monks, 49, of Cardiff, said it felt like a "hollow victory".

The pensions victim added: "It's good news but doesn't go far enough."

Despite mounting pressure on Work and Pensions Secretary John Hutton, there is no guarantee the ruling will lead to pensioners being fully compensated.

When challenged by Tory leader David Cameron yesterday, Mr Blair said he was willing to try to help victims.

But the PM stressed any rescue package must be affordable. The Government claims the compensation cost could be pounds 15billion.

But pensions experts Tom McPhail revealed: "The true cost is likely to be nearer to pounds 3billion to pounds 4billion. This is a drop in the ocean of the cost of public sector final salary schemes, which the Government racks up every year.

"If ministers fail to act now, then the conclusion is clear - when it comes to pensions, you simply can't trust the Government."

Yesterday's ruling came as a huge relief to Mr Bradley, 63, of Belfast; Mr Duncan, 65, of Jarrow, Tyne and Wear; Andrew Parr, 63, of Sheerness, Kent, and Thomas Waugh, 67, of Tamworth, Staffs. Three of them would have faced crippling legal costs if they lost.

Plant operator Mr Bradley worked for 27 years at Irish Fertiliser Industries until it went bust in 2002. Engineer Mr Duncan spent 36 years at British United Shoe Manufacturing until it was declared insolvent in 2000.

Steel worker Mr Parr worked at Allied Steel and Wire for 20 years until 2002.

And Mr Waugh was at agricultural machinery firm F H Burgess when winding up of the pensions scheme started in 2000.

Mr Parr - who has had to work past his retirement age - said: "The Ombudsman has found in our favour, the select committee has, the European court has said that pensions in this country are not sufficiently protected, and now this court has found for us.

"Three strikes and you are out is normal. That's four strikes. Surely the Government should give up now and admit liability?"

Lib Dem Work and Pensions Secretary David Laws added: "This is a fantastic David versus Goliath victory for the pensioners."

And Britain's biggest pensioners' body, the National Pensioners Convention, said it proved Government policy was "in tatters".

General secretary Joe Harris added: "The real issue arising from this case now is the need for a bigger basic state pension."

The Department for Work and Pensions last night acknowledged the pensioners' victory,

But it pointed out the judge had disagreed with several of the ombudsman's findings.

THE WINNERS

Bob Duncan

FOR 36 years Bob worked for British United Shoe Manufacturing in Leicester, until it went into liquidation in 2000. He had saved pounds 25,000 in additional voluntary contributions, and was expecting to get just under pounds 10,000 a year at 65. However, the company only had enough money to pay pensioners when it closed - it had nothing left over for people who had not retired. Bob is now 65 and working for the Royal Mail in Jarrow. It looks like he may have lost everything and will have to live off his state pension of pounds 109 a week.

Andrew Parr

ANDREW, 63, lost 60 per cent of his pension after paying in to the scheme at Allied Steel and Wire in Sheerness, Kent, for 22 years. When the company went bust he was 59. He was expecting to get about pounds 15,500 a year when he retired at 62. But he only gets pounds 7,000 and has to work until 65, despite developing a stressrelated heart condition.

Henry Bradley

WHEN Irish Fertiliser Industries in Belfast closed in 2002, Henry lost his job at 59. As far as he was concerned, his pension was safe - they had been told in 1998 they were guaranteed. But the company only had enough to pay out existing pensioners, so now the 63-year-old will only get a quarter of the pounds 8,400 a year he was expecting. He says he had started to spend money on home improvements - if he'd known his pension was in danger he would have done something about it... and hung to his savings.

Tom Waugh

ALTHOUGH the firm Tom, 67, worked for - Burgess Agricultural Engineers - started winding up its pension scheme in 2000, he figured he would still get pounds 7,200 a year when he retired in 2004 after 26 years. But Tom, from Tamworth, Staffs, gets just pounds 2,700 as the trustees can only pay out a minimal figure while the wind-up is going on.

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CAPTION(S):

FURY: Thousands lost their nest eggs; PRESSURE: John Hutton may appeal