Pension boost for former mineworkers after Budget unveiled

The UK Government has announced moves to overturn an “historic injustice” involving the pensions of former mineworkers.

Ministers said more than 100,000 former mineworkers will receive £1.5 billion of money kept from their pensions.

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

Reserve fund

An investment reserve fund set up using profits from the Mineworkers’ Pension Scheme in 1992, to provide a buffer in case it went into deficit, was due to be returned to government in 2029.

The fund, now worth £1.5 billion, will be handed over to the pension scheme.

Mr 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.”

‘Right the wrong’

Minister for Industry Sarah Jones said: “Miners powered our industries and our homes for decades.

“That’s why we have to right the wrong that has denied them the decent pension they deserved.

“We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most.

“This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay, an increase of 32%.”

Gary Saunders, chairman of the Trustees of the Mineworkers’ Pension Scheme, said: “As a Trustee board we are delighted we will be able to put more money in our members’ pockets.

“We are also grateful to the many members and MPs who have shown support of the scheme on this matter over the years.”