Families who saw their festive savings disappear with the collapse of hamper firm Farepak have welcomed an early Christmas present.

Last night, a rescue fund set up to give Christmas back to thousands of families - including 20 living in Blackbird Leys, Oxford - reached half a million pounds.

The Farepak Response Fund, created by the Family Fund and the Department of Trade and Industry (DTI), will collect and distribute donations to affected families.

One group of 22 families from Blackbird Leys, Kennington and Bicester lost savings of £7,600 set aside for Christmas vouchers when Swindon-based hamper firm Farepak went into administration last month.

Mother-of-six Helen Boore, of Ladenham Road, Blackbird Leys, lost £900.

She said: "It's fantastic for us. I now know I can get something, I know it is not all of the money that we put in, but something is better than nothing and that means an awful lot to me."

Farepak agent Debra Sims, of Pegasus Road, lost £970.

She said: "A few of my customers really struggled all year. I'm just pleased that they will get something, if not all of it back in time for Christmas. So we have to say thank you to everyone involved. It wouldn't take much more for me to be in tears."

Last night, Tesco and Marks & Spencers both pledged £250,000 each to the fund. Sainsbury's announced it would honour 25 per cent of the vouchers it had sold through Farepak before the collapse.

The creation of the fund was announced in the House of Commons and Trade Minister Ian McCartney urged all MPs to pledge a day's wage - or £165 - to the cause as a 'goodwill gesture'.

So far Oxford East MP Andrew Smith has pledged a day's wage while Wantage MP Ed Vaizey said he would not put any money in because he already supported the Oxfordshire Community Fund.

A spokesman for Henley-on-Thames MP Boris Johnson said it was something under consideration.

Speaking in Parliament yesterday, Mr Smith called for an inquiry into how it was allowed to collapse.

He said: "The first step must be to get as much back as possible of cash paid in. Big supermarkets, banks, Stock Exchange and others who can afford to, have a duty to pitch in and help these families have the Christmas they saved for."

Paul Keenan, communications manager for The Farepak Response Fund, promised all money collected would be distributed in vouchers to agents before Christmas.

He added. "The exact amount people will get has not been determined because it depends on how much we get in."

Businesses or individuals can donate or pledge money to the Farepak Response Fund before November 24.

Cheques can be sent to Farepak Response Fund, Unit 4, Alpha Court, Monks Cross Court, York YO32 9WN or donations can be made via the www.farepakresponsefund.org.uk website. Mr Smith is also urging any families who lost out in the Farepak collapse to contact his constituency office on 01865 305080.