Former mineworkers across the UK are celebrating their first pension boost after the government transferred £1.5 billion to the Mineworkers' Pension Scheme, marking the end of a
decades-long injustice.
More than 100,000 retirees will see an average increase of £29 to their weekly pensions, representing a 32% rise in their annual payouts. This historic adjustment ensures that miners and their dependents, who powered the nation for generations, finally receive the rewards they have long deserved.
The pension increase follows the government’s decision to reverse a long-standing policy that diverted funds from the scheme. This pivotal move, announced last month, redirects the investment reserve back to its rightful owners.
Secretary of State for Energy Ed 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 Trustees also acknowledged the years of advocacy from members and MPs, adding that discussions with the government regarding surplus-sharing arrangements will continue in the coming months.
The Mineworkers’ Pension Scheme was established during the privatisation of British Coal in 1994. At that time, the government agreed to share 50% of any surpluses generated by the scheme in exchange for a guarantee that pensions would rise with inflation. The investment reserve, created in 1992 to safeguard against deficits, was originally set to revert to the government in 2029.
The government has now committed to reviewing the surplus-sharing agreement, ensuring miners and their families benefit in the years ahead. Additionally, proposals from the British Coal Staff Superannuation Scheme, which operates under different rules, will also be reviewed.
While honoring the contributions of former miners, the government has also intensified efforts to support the transition to clean energy. Initiatives include lifting the ban on onshore wind, approving major solar farms, and launching the UK’s first carbon capture sites.
The establishment of the Office for Clean Energy Jobs underscores a commitment to ensuring the next generation of workers is equipped to seize opportunities in the green energy sector.
For former mineworkers, this pension increase is more than just financial relief—it is long-awaited recognition of their vital role in shaping the nation’s industrial legacy.