Mineworkers’ Pension Scheme
Tuesday, 18 March 2025
Contributions
Nick Smith (Blaenau Gwent and Rhymney) (Lab)Labour
3. What assessment he has made of the potential impact of changes to the mineworkers’ pension scheme on the living standards of the recipients of that pension.
Jake Richards (Rother Valley) (Lab)Labour
5. What assessment he has made of the potential impact of changes to the mineworkers’ pension scheme on the living standards of the recipients of that pension.
Elaine Stewart (Ayr, Carrick and Cumnock) (Lab)Labour
11. What assessment he has made of the potential impact of changes to the mineworkers’ pension scheme on the living standards of the recipients of that pension.
The Minister for Industry (Sarah Jones)Labour
This Labour Government have ended the historic injustice of the mineworkers’ pension scheme. At the end of November last year, the first uprated payments for the pension scheme landed for over 100,000 miners and their families. That is an average increase of 32% on their monthly payments, or an average additional £28 a week.
I thank the Minister for her answer and for her hard work to increase payments to mineworkers and their families across the country. After digging for coal for many years, 1,600 miners and their families have received an uplift of nearly £30 a week in my constituency of Blaenau Gwent and Rhymney. However, progress is still needed on the staff superannuation scheme. The trustees of that scheme confirmed to me that the average age of pension members is 76, so with time marching on, will the Minister outline the next steps to help members of the staff scheme?
I thank my hon. Friend for his remarks; he is right to talk about the British Coal staff superannuation scheme. The initial focus of our work was on the mineworkers’ pension scheme, which was in our manifesto. We had to work at pace on that commitment, and we are working with the Government Actuary’s Department on how the surplus-sharing arrangement will work going forward. That big piece of work is under way, but my hon. Friend is right to point to the tens of thousands of people who are in the BCSSS. I too have met the trustees, and we are working as fast as we can through the issues associated with that scheme. The two schemes are different—they operate in different ways—but the Government are the guarantor for both of them, and I will reconvene trustees to continue discussions with them and take this matter forward.
At the last general election, I made a promise to ex-miners in my constituency that a Labour Government would deliver justice on the MPS investment reserve fund and return it to its members. I am delighted that at the end of last year, this Government delivered, providing a boost of more than 32% to their pensions. However, in my constituency there are more than 600 BCSSS members, who are still really concerned about this issue, so I would welcome the Minister’s answer on that. Can she reassure them and me that the trustees will continue to update the members of that scheme? At the moment, there is a degree of uncertainty on what progress can be made over the coming months.
I thank my hon. Friend for his concern for his constituents who are in the BCSSS. I am very receptive to the calls from BCSSS trustees. I wrote to the Chief Secretary to the Treasury at the end of last year to begin discussions. We have received a positive response from him, and we are now taking the next steps to move this process forward.
We are only partway there on the pension injustice for miners. The British Coal staff superannuation scheme has around 40,000 members who formerly worked in mining industries, including a number of my constituents. They include many women who were among the lowest paid in the coal industry—my own mum worked in the pit canteen. Can I assure my constituents enrolled in the BCSSS that transferring the £2.3 billion investment reserves to its members is a priority for this Government?
My hon. Friend is right to point out that there are about 40,000 people in this scheme. About 5,000 of them are women, unlike the mineworkers’ pension scheme, of which the vast majority of members are men. The two schemes are different and operate in a different way, because in 2015 the BCSSS had run two deficits and was at risk, so there had to be an intervention from Government. The two schemes operate differently and have to be looked at differently. The Government Actuary’s Department team is working its way through the mineworkers’ pension process, and we are now working with officials on this issue. I am meeting officials later today to talk about it more to see what we need to do. I stress that this is very complex—we are talking about billions of pounds-worth of assets—but we are absolutely receptive to calls from the trustees, and I will meet with them again soon.
Source: UK Parliament Hansard API. Debate ID: 4875942.