Zarah ChoudharyMore than 100,000 former mineworkers across the UK have received a boost to their pension, with an average £29 extra added to their weekly payment.
The payment followed the Government’s reversal of what Secretary of State for Energy Ed Miliband referred to as “an historic injustice,” leading to £1.5bn being transferred to the pension scheme last month.
The uplift represented an average 32% rise to the annual pensions of nearly 112,000 former mineworkers and their dependants across the UK – an average increase of £29 per week for each member.
Miliband said: “This Government has kept our promise to return money rightfully owned to the ex-miners and their families – and today thousands of people will receive the money they deserve in their pension as a result.
“Today marks an end to a decades-long injustice that has denied thousands across the country the decent pension that they so undeniably deserve.
“We have delivered on our promise to right this wrong and I hope members and their families are able to enjoy the victory that they have waited far too long for.”
The trustees of the Mineworker’ Pension Scheme said: “This month marks a historic milestone for the members of our Scheme with the first instalment of pension resulting from the recent Investment Reserve transfer being paid.
“As Trustees, we’re delighted that we’ve been able to get this extra money into our members’ pockets so quickly.
“This has been made possible due to the swift action of the government in making good on its manifesto commitment but also as a result of the hard work of the team that supports the Scheme.
“We would also like to thank again the many members and MPs who have shown support of the Scheme on this matter over the years.
“We are now looking forward to discussing our Scheme’s surplus sharing arrangements with the government in the coming months and sharing the outcome with our members as soon as we can.”
The Energy Secretary and Minister for Industry Sarah Jones met members and trustees of the scheme in October at the National Union of Mineworkers’ headquarters in Barnsley, after the Government delivered on a longstanding campaign ask from ex-pit workers to transfer the investment reserve of the Mineworkers’ Pension Scheme back to members.
When British Coal was privatised in 1994, the Government agreed to take half of any surplus generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.
The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit.
This money was due to be returned to Government in 2029.
The Government is now conducting a review of the surplus sharing agreement with the scheme trustees – ensuring miners and their families benefit for years ahead, with next steps to be set out in the coming months.
The Government also committed to review proposals set out by the Trustees of the British Coal Staff Superannuation Scheme – the pensions scheme for former pit managers, which is run on a different basis as the Government takes no money from any surpluses.
To support workers, the Government also set up the Office for Clean Energy Jobs to help the next generation of skilled workers to access UK-wide job opportunities that the government’s clean energy superpower mission will help create.
Action included lifting the ban on onshore wind, setting up Great British Energy and announcing a partnership with The Crown Estate to accelerate offshore wind projects, approving four major solar farms, launching the Clean Energy Mission Control centre led by Chris Stark, securing a record pipeline of renewable projects in the latest auction and launching the UK’s first carbon capture sites.
