The Government is under increasing pressure to introduce legislation to protect savers and ensure Bradford families are never left out of pocket again.

Labour MP Anne Snelgrove called for the regulation in the light of the Farepak collapse which left hundreds of families across Bradford facing a bleak Christmas 2006 - most of whom have received little or no compensation 15 months on.

An estimated 150,000 people across the country lost up to £40 million in savings in October 2006 when the Christmas hamper company went bust.

They included hundreds of families from Bradford who had made regular payments into the scheme over the year and were expecting to receive shopping vouchers and hampers.

The Swindon South MP proposed a similar system, which is available to travellers when travel firms go bust, should be introduced to stop the tragedy happening again.

She said: "I am pressing for light touch regulation for similar schemes so that in future all savers' money is protected by law."

She said the Government, financial services regulators and the Commons did not regard customers who put away money each month into these schemes as savers.

She added: "In contrast the people who offer these schemes market them as saving for Christmas and, crucially, the people who put their money in these schemes regard themselves as savers just as much as those who save with banks such as Northern Rock.

"It flies in the face of social justice that this House should protect one set of savers and not the other."

Under the travel system, banks and insurance companies provide bonds which are backed up by the Air Travel Trust Fund and managed by the Civil Aviation Authority. She said she hoped regulation would put people in Christmas saving schemes on a par with people in other saving schemes.

The only solution was regulation as it would assure low-income families determined to stay out of debt that their investment was safe.

The Christmas Savings Schemes (Regulation) Bill has cross party backing but is unlikely to become law because of lack of parliamentary time.

Last month the Government conceded there is still no time scale on when former Farepak customers will receive the small payout - only 5p for every £1 saved.