ASW workers have campaigned over their lost pensions

Ann Abraham said the advice to 1,300 Allied Steel and Wire staff in Cardiff, Sheerness and Belfast caused "suffering, distress and uncertainty."

She has called on the UK Government to compensate those who lost pensions.

But the UK Government has rejected her report, saying the companies involved should bear liability.

More than 800 staff in Cardiff lost their jobs, and most of their pensions, when ASW folded.

It quickly emerged that a massive shortfall in the pension funds meant ASW pensions could not be guaranteed.

I would have roughly have been on about �150 a week, plus my old age pension, I could have retired and had a happy life, which I worked all my life for. Former ASW worker, Patrick Morris

One man who was affected is Patrick Morris who worked with ASW for 26 years and fears he will never see his pension.

He said: "There's people who generally lost their own claims and worked all their lives to survive and have a future when they retire and we've lost the lot.

"There are some people who have actually passed away leaving their wives in a terrible state not knowing what will ever happen if we do get the pension. And the government hasn't taken any notice at all.

European Court

"I would have roughly have been on about �150 a week, plus my old age pension, I could have retired and had a happy life, which I worked all my life for.

"But at the moment, it doesn't look like it will actually happen.

"I'm back over the steel works now, I'm working for a contract firm. I'm earning �140 a week less than I earned before to make ends meet, which is a problem at times."

The former steelworkers' plight led the UK Government to set up a �400m pensions protection fund to protect pension rights when a firm goes bust.

But when the new pensions bill was published, early in 2004, there was further disappointment. The legislation was not retrospective and did not help the Welsh ASW workers.