Pensions boost for Welsh mineworkers

Former mineworkers are receiving on average an extra £100 to their weekly pension payment from today.

The first 41% payment boost follows the Chancellor’s Budget announcement that the UK Government has transferred the £2.3 billion reserve, previously held by government since 1994, to members of the British Coal Staff Superannuation Scheme (BCSSS).

The increase will be paid out in time for Christmas so former colliery workers and staff get what the Department for Energy Security and Net Zero has called “the just rewards from their labour.”

With payments backdated to November 2024, when the increase to the Mineworkers’ Pension Scheme was implemented, almost 40,000 former mineworkers across the UK should today receive a £5,500 lump sum on average.

The BCSSS scheme represents former coal miners as well as those who worked in non-mining roles at collieries, including engineers, managers, canteen workers and administrators. More than 5,000 women are part of the scheme, representing 13% of members.

It is one of the largest occupational pension schemes in the UK, and was closed in 1994 under the Coal Industry Act following the privatisation of the coal industry.

Last year the government transferred £1.5 billion to members of the Mineworkers’ Pension Scheme for more than 100,000 members across the UK.

The UK Government say it has now delivered a pension uplift and justice for all members of the former British Coal pension schemes.

Secretary of State for Energy and Net Zero, Ed Miliband said: “I want to pay tribute to all the mineworkers and all the campaigners involved in ending this decades-long injustice.

“Today, thousands will rightly see a 41% uplift in their pension payment just before Christmas – providing them with the retirement they deserve.”

In Wales, 3,876 former miners and mineworkers will receive the uplift, along with 2,581 individuals in Scotland and 31,968 in England.

Secretary of State for Wales Jo Stevens said: “The pensions injustice for thousands of former mineworkers in Wales has finally been righted.

“I’d like to recognise the efforts of those who have fought for many years to ensure pit staff get their just rewards. Today nearly 4,000 former British Coal employees will receive a pensions uplift as a result of the action the UK Government has taken.”

Historic moment

Cheryl Agius Chair of Trustees of the British Coal Staff Superannuation Scheme, said: “This is a historic moment – the result of a year of determination, advocacy and collaboration – and it marks a turning point for the Scheme.

“The Government has listened to the Trustees, Scheme members, and Coalfield MPs that have supported this issue, and agreed to transfer the Scheme’s investment reserve to members.  Being able to make the first bonus pension increase today, brings BCSSS members into line with their former colleagues in the Mineworkers’ Pension Scheme (MPS), who received their investment reserve in November last year.

“Our members have been key to helping us raise this issue with the government over the last twelve months and the Trustees would like to thank them for their support.”

The UK Government will meet with Trustees of the BCSSS in the New Year to agree a way forward with surplus sharing arrangements.

Clean energy superpower

The UK Government is moving forward with its clean energy superpower mission, funded by over £62 billion of record private investment announced since July 2024 and historic levels of government funding.

They aim to revitalise industrial heartlands across the UK, including in former coal mining areas. The clean energy sector aims to employ more than 800,000 people by 2030, as set out in the government’s Clean Energy Jobs Plan, marking an increase of over 400,000 from 2023.