FOUR Government departments have sparked hopes of a jobs boost in York by expressing an interest in moving into the soon-to-be-vacated Pensions Centre.

In a Commons emergency debate called by York MP Hugh Bayley it emerged that the Cabinet Office has inquired about using the offices.

It joins the Ministry of Defence, the Department of the Environment, Food and Rural Affairs and a fourth unknown department who are said to be considering relocating staff to the Monks Cross building.

It has also emerged that taxpayers would be forced to shell out millions of pounds to the private company which owns the offices if a deal is not reached, as the Government has signed a lease until 2018.

The Department of Work and Pensions stunned workers last month by announcing the centre - opened only two years ago to administer applications for the new pension credit and winter fuel payments for pensioners - was being axed with the possible loss of up to 300 jobs.

Mr Bayley said: "The Government has created the problem, and I hope they will do all they can to help those staff to find alternative work and that it will be possible to avoid compulsory redundancy."

Ryedale Tory MP John Greenway said: "My first preference is to find, as far as possible, an alternative use for the facility - the staff and equipment as well as the building.

"The last thing I want is for the premises to be vacated and everything ripped out, only to find two or three years down the track that there is an alternative use and that we must start all over again. That would be a wicked waste of public funds."

Pensions Minister Chris Pond accepted the closure of the Pension Centre was "distressing and worrying" for staff. But he said: "We are investigating opportunities with four departments which may have an interest in the York area."

Meanwhile, union leaders claimed that civil servants across the country were considering strike action in the face of an "unprecedented assault" on the civil service, with potentially 100,000 job losses.

They were expected to voice their concerns over low pay, redundancies and service cuts when they protest at the House of Commons today.

Updated: 10:31 Wednesday, July 14, 2004