HOPES of averting a strike by 1.5 million council workers and civil servants rose after a breakthrough in a bitter dispute with the Government over pensions.

Ministers offered a "fresh start" in dealing with the controversy, and promised unions that the Government would revoke changes to the retirement age due to come into effect on April 1.

Unions will meet over the next few days to decide their next move but it looks likely that a planned 24-hour walkout next Wednesday will not go ahead, saving the Government the embarrassment of a huge outbreak of industrial action just weeks before a General Election.

Deputy prime minister John Prescott made the new offer at talks in London on Friday and it was backed up by a letter from work and Pensions Secretary Alan Johnson, who acknowledged there had been "misunderstandings and suspicions" of the planned reforms.

The promised changes to the Government's plans will affect local authority workers but were expected to spread to civil servants who are involved in a separate row over pensions.

A joint statement from Unison, Amicus, the GMB, the Transport and General workers and Ucatt, representing more than a million council staff, said: "After three weeks of intensive negotiations, the deputy Prime Minister has made clear his intention to revoke the April 2005 changes to the local Government pension scheme and to introduce a new negotiating body to deal with the long-term future of the scheme.

"The unions welcome the fresh start and will be meeting over the weekend to discuss next week's planned strike."

Dave Prentis, general secretary of Unison, welcomed the breakthrough, adding: "The commitment comes from the top level of Government and shows social partnership at its best.

"Our objectives over the past three weeks have been to get negotiations going on pensions, something we have never had before, and to get the changes lifted. We have achieved both those objectives."

Jack Dromey, deputy general secretary of the TGWU, said one million workers need no longer fear poorer pensions from next month.

"Now we can negotiate with Government a sensible long-term solution ensuring security and dignity for the nation's public servants."

Leaders of the Public and Commercial Services Union, which represents 290,000 civil servants, will meet on Monday to decide their next move. An official said the development was a good sign.

The Government sparked anger among council workers and civil servants by announcing plans to increase their retirement age from 60 to 65 and make other changes to their pension arrangements.