John Healey says he is “proud” that the Labour government has ended the historic injustice of the Mineworkers’ Pension Scheme.
2,264 former mineworkers across the Rawmarsh and Conisbrough constituency will receive an immediate uplift in their weekly pension following the announcement in the budget.
The Labour manifesto commitment means a 32 per cent boost to the annual pensions of 112,000 former mineworkers – an average increase of £29 per week for each member – ensuring fair payouts for years to come.
Rawmarsh and Conisbrough MP John Healey said: “I’ve campaigned over the last 15 years alongside the National Union of Mineworkers, ex-miners, and other South Yorkshire MPs for changes to the Mineworkers’ Pension Scheme and its so-called ‘surplus-sharing arrangement’ between the government and members.
“That’s why I’m proud that this Labour government has acted to honour our election promise to change the system.
“Miners too often paid a high price in ill health, and even with their lives. We owe them the greatest debt for the job they did underground to keep our country going.”
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.
Under the previous Labour government miners and their families were compensated for respiratory disease and vibration white finger. In Rotherham alone, more than 20,000 ex-miners and their families received more than £120m. During that time Labour also spent £90m on one-off payments to MPS members on the lowest incomes and increased mining pensions by 20% over and above inflation.
Gary Saunders, Chair of the Trustees of the Mineworker’ 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.”
Allen Young, Pensioner Representative Trustee for the North East of England and Overseas members, said: “The government’s decision to make good on this part of its manifesto commitment in respect of the Scheme is a very positive development for our members. The Trustees will use the Investment Reserve to increase our members’ pensions and we will be writing to all members with the good news very shortly.”