An Army widow whose image was used in last year's Poppy Appeal posters could lose her home in a legal battle to receive a full pension.

Tina Thompson has been told she is entitled to only half the usual pension because her husband Mick was killed in a traffic accident as he travelled to his army base in Cyprus, rather than while on duty.

The case was the subject of a debate in the House of Commons as her local MP warned that Mrs Thompson, from Stourbridge, faces the loss of her home in her battle for justice.

Lynda Waltho (Lab Stourbridge) said: "She must now face the trauma and suspense of a further protracted legal battle for which she now may lose her home to pay the fees to receive what most of us would describe as her right."

The MP added: "Mrs Thompson has been let down in her hour of need. Surely concern and compassion is called for when unexpected accidents such as this strike service personnel and their families."

The Royal British Legion last year used an image of Mrs Thompson and the couple's two-year-old son Aidan, being swung on the beach by a figure made out of poppies, to publicise the annual Poppy Appeal.

Sergeant Thompson had been in the army for 17 years when he died on his way to work in 2005, aged 38.

He served with the Royal Logistics Corps and had completed two tours of duty in Iraq, as well as serving in Kosovo, Bosnia and Northern Ireland.

The Ministry of Defence ruled that Mrs Thompson and her son were entitled to only half the normal pension - because Sergeant Thompson was on his way to work at the time of the accident, and not officially on duty.

Although Mrs Thompson won an appeal against the decision, the Ministry of Defence took the case to a further appeal hearing which found in its favour. As a result, Mrs Thompson's pension is £388 a month.

Speaking in the House of Commons, Ms Waltho said: "Ever a fighter, Mrs Thompson has again decided, with the assistance of the Royal British Legion, to fight on and to take the case to the Court of Appeal, although she could face a bill for legal costs of tens of thousands of pounds if the action fails."

She added: "Mrs Thompson lost her husband, her son will never know his father and her initial grief was compounded by the fact that she only received half of that to which she was entitled.

"Mrs Thompson had the full amount of pension restored on appeal but has once again lost 50 per cent of the pension to which she thought she was entitled.

"Surely as a nation we are obliged to treat our service personnel and their relatives with respect and compassion. Alas, those sentiments appear to be sadly lacking in this case."

Defence Minister Derek Twigg said: "I cannot imagine what a traumatic and difficult time it has been for Mrs Thompson since the loss of her husband due to his death in a motor accident in Cyprus in 2005.

"I pay tribute to him for his service in a number of military theatres and operations with the armed forces."

But he said he was unable to comment directly on Sergeant Thompson's case because it could go to the Court of Appeal.

He added: "The Government are fully committed to meeting their duty of care to serving personnel, veterans and families."