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

Labour MP Anne Snelgrove (Swindon South) called for the regulation in the light of the Farepak collapse which left hundreds of families across Bradford facing a bleak Christmas in 2006 - most of who have received little or no compensation.

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

Mrs Snelgrove proposed that a system similar to the one available to travellers when travel firms go bust should be introduced to stop the disaster happening again.

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 their investment is 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 timescale on when they will receive the small payout - only 5p for every £1 saved. And in another blow the Government said it will not publish the report into the fiasco because of "legal gateways."