An Oxfordshire man who has been fighting the last four years to get former workers a payout from their collapsed company pension scheme is relieved the Government is finally coming to their help.

John Brooks, 68, told the Oxford Mail that yesterday's announcement of a rescue package, that will meet 90 per cent of the value of their pensions, was "tremendous news."

He and six others from the former Early's blanket factory in Witney are now of retirement age. Another 120 who paid into the company scheme but are still working can also now expect a payout when they are 65.

Mr Brooks, of Westfield Road, Witney, was praised by Tory leader and local MP David Cameron as a "modern British hero" at the party conference in October for his fight for justice. He said: "We have been fighting for some years now, but on the face of it this is tremendous news, particularly as it is inflation linked. It is good news just before Christmas.

"We will be looking at small print, of course, and we need to know when the money's coming. But, after all the pressure, it finally looks like we've got somewhere."

Mr Cameron said: "I am delighted the Government has finally listened. They have pretty much adopted all the suggestions. John Brooks should be proud."

Work and Pensions secretary Peter Hain announced yesterday that an estimated 140,000 employees of collapsed firms across the country would receive 90 per cent of the value of their pensions through the Government rescue package.

The £2.9bn fund includes £1.7bn retrieved from failed pension schemes, topped up with taxpayers' money.

Department of Work and Pensions spokesman Ben Lloyd said no timescale had yet been set. "Legislation will be brought forward in the new year and I would expect payments would be made as soon as possible after that," he said.

Mr Brooks worked at Early's for 41 years, paying into the company scheme for 38 years.

He and his wife Rosemary have been receiving £718 a month in married couple's State pension.

They can now expect about £500 a month extra through the Government scheme. In addition, they are due £20,000 as a lump sum in backdated payments.

Fellow Early's pensioner John Parrott, 65, of Greenhill Road, Ducklington, said: "John deserves a lot of thanks. He has done a lot of fighting for this on our behalf."