THE Government has confirmed victory for a York woman battling to keep pension rights after her husband undergoes a sex-swap operation to become a woman.

The Evening Press revealed the woman risked losing her entitlement to the man's occupational pension - despite the couple wanting to stay together.

But, after campaigning by City MP Hugh Bayley, insurers have agreed a deal to protect the unnamed woman's benefits after the man undergoes surgery.

Last night, the Pensions Minister praised the Labour MP for securing the successful outcome in the Commons.

She hopes the case will set a precedent for the "very small" number of couples expected to find themselves in the same position.

Under the terms of the Government's Gender Recognition Bill, the couple - who have been married for 35 years - will be forced to divorce when the transsexual husband registers his right to be legally recognised as a woman.

But they will have the option of registering their union on the same day under the Civil Partnerships Bill.

The Civil Partnerships Bill is designed for gay couples, but Mr Bayley has been told it will be open to his constituents, who have three grown-up children.

This will allow all the pension rights to be transferred.

Updated: 10:34 Wednesday, May 26, 2004