Union officials have held showdown talks with Pensions Minister Malcolm Wicks over the fate of a benefits scheme belonging to hundreds of Bradford textile workers.

Peter Booth, national organiser for the Transport & General Workers Union (T&G), held talks with Mr Wicks in a bid to get reassurances for members of the Carpets International scheme.

The firm, formerly known as Kosset Carpets, closed in 2003 and the Telegraph & Argus has learnt that the scheme is currently in deficit to the tune of about £79 million. There is about £39m in the scheme but the cost of paying out all the benefits to all the members is around £112m.

It is being managed by an independent trustee at Leeds law firm Walker Morris and is now in wind-up. The T&A revealed earlier this month that the trustee, Andrew Turnball, had now formerly applied for Government help to plug some of the deficit.

Under the Government's new Financial Assistance Scheme (FAS), pension schemes that are being wound-up and are in deficit can apply for help.

Once the scheme is up and running later this year, workers within three years of retirement age will be guaranteed to receive around 80 per cent of their benefits, paid for by the fund.

The Department for Work and Pensions has so far not said which company schemes will benefit from the FAS. However, Mr Booth said he had received assurances from Mr Wicks during a meeting in London that the Carpets International scheme would be included.

He said the news was a boost for many of the most vulnerable of the scheme's 1,784 members. Those who have already reached pensionable age get priority on the remaining funds and should continue to receive their basic benefits.

"This news about the FAS is obviously welcome because those members within three years of retirement are those who have the most immediate needs," said Mr Booth.

He said the union was happy with the 80 per cent figure that the FAS is expected to pay out, saying it would make a "realistic and meaningful difference".

A spokesman for the Department of Work and Pensions said: "Carpets International is one of a number of companies that is listed on the DWP website as being potentially eligible for help under FAS.

"The list was compiled from information supplied under a data collection exercise and, at present, it is only intended as an indication of companies which may benefit from the scheme."