Saga, a company that specializes in providing a range of products to the mature market, has issued a cutting attack against the UK government's refusal to help a group of citizens left with significantly reduced pensions after their employers folded.

Saga said it has entered the issue because of the overwhelming outcry against the government from its members. According to reports, the over-50 insurer and holiday provider intends to lobby the Labour party conference in October in a bid to get the government to change its stance.

The outrage against prime minister Blair and his cabinet comes after it rejected a recommendation from the Parliamentary Ombudsman’s to pay out compensation to around 125,000 affected people. The government had earlier reassured the pension holders in question that their savings were safe.

Defending its position, the UK government said it would cost taxpayers GBP15 billion to resolve the issue, a price that the country could not afford. However, Saga argues that the costs involved are actually much closer to GBP3 billion.

Saga also wants more to be done to safeguard pension savings in the future.