Press Release: Mineworkers’ Pension Scheme

Labour Government ends the injustice of the Mineworkers’ Pension Scheme and transfers Investment Reserve to miners and their families
 
Historic injustice reversed as 247 mineworkers and their families in Gower finally have the Investment Reserve from their pension scheme transferred to them, boosting their pensions by an average of 32 per cent.

Labour delivers longstanding campaign ask from ex-pit workers, alongside new review to also ensure mineworkers receive a fair pension for years to come.

Energy Secretary pays tribute to the “mineworkers who powered our country” and the campaigners who fought for justice over many years 247 former mineworkers in Gower will receive an immediate uplift in their weekly pension, overturning an historic injustice and ensuring fair payouts for years to come.

Following the announcement in Wednesday’s Budget, Energy Secretary Ed Miliband confirmed that the move will mean a 32 per cent boost to the annual pensions of 112,000 former mineworkers across the UK – an average increase of £29 per week for each member.

Tonia Antoniazzi, local MP for Gower welcomed the announcement, saying:

“It is a national scandal that former miners in Gower have had to fight for so long for the pension settlement they deserve.

“Today, Labour ends this injustice and delivers what is rightfully owed back to mining families.

“This is a victory for the relentless campaigning of the trustees, members, and coalfield communities here in Gower.”

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.  

Former mineworkers and their families have fought for justice for many years. In a landmark decision, the fund - now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.

When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.

The scheme has continued to produce strong returns and the government has never paid any funds into it. Therefore, the government is also delivering on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months. The trustees are responsible for deciding how the £1.5 billion fund is distributed amongst their 112,000 members and are now working at speed to deliver the bonus into pension pay packets from November this year.

Energy Secretary Ed Miliband said:

“We owe the mining communities who powered this country a debt of gratitude.
For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.

Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice- today is their victory.”

Chris Kitchen, General Secretary of the NUM said:

“The Labour Party recognised the injustice of the Mineworkers’ Pension Scheme whilst in opposition. Now in Government they have made good on their manifesto commitment to return the Investment Reserve Fund so it can be used to increase pensions.
“This is the change we voted for.”
 
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