A pension scheme belonging to hundreds of former textiles workers in Bradford has formally applied for financial help from the Government.

The Carpets International pension scheme is in deficit and is in the process of being wound-up.

The move threatens the entitlements of its 1,784 members, especially those who have not yet started to receive their pension.

Under the rules, should funds run short, payments are made to existing pensioners as a priority while those still in work may be left short.

Now the scheme's independent trustee is hoping the Government may step in to help boost the funds available.

The problems follow the demise of the famous Bradford-based textile company, which was formerly known as Kosset Carpets, in 2003 with the loss of 150 jobs in the city.

Since the collapse of the company, the scheme has been managed by its independent trustee, Leeds-based solicitors Walker Morris.

Today Andrew Turnball, the director at Walker Morris re-sponsible for the scheme, con-firmed it had applied for help from the Government's new Financial Assistance Scheme (FAS). It is being set-up to help fund shortfalls in pension schemes at insolvent compa-nies which are wound-up ahead of the introduction of the new Pension Protection Fund.

The Department for Work and Pensions confirmed it had received the application for funding for the Carpets International scheme and it is now considering whether it will be included.

Mr Turnball said he expected a decision on whether the scheme had been included in the FAS by May. If it is successful, those members of the scheme within three years of retirement would expect to see up to 80 per cent of their entitlement safeguarded.

It is understood that members of the scheme will receive details of its current financial standing in letters from Walker Morris during the next fortnight. That will give them a clearer indication of how much of their entitlement they may be likely to receive in the future.

Mr Turnball said: "It may be that the Government will provide some assistance through the FAS. Most of the detail is yet to be provided but we don't know on what basis the members will benefit."

Even though existing pensioners appear likely to receive their future payments, they will not get any of the future increases outlined under the terms of the scheme.