MORE than 100,000 former mineworkers will soon benefit from a £1.5 billion injection into their pension funds, following an announcement from ministers to overturn what has been called an “historic injustice.”
Unveiling the news in Wednesday’s Budget, Energy Secretary Ed Miliband confirmed that 112,000 former mineworkers will see their annual pensions increase by 32%, averaging an additional £29 per week per member.
The funding comes from an investment reserve established in 1992 with profits from the Mineworkers’ Pension Scheme, initially intended as a financial buffer in case the scheme went into deficit. This reserve, valued at £1.5 billion, was scheduled to revert to government in 2029 but will now be redirected to bolster the pensions of retired miners.
Energy Secretary Miliband expressed relief that decades of contention over withheld pension funds would end: “We owe the mining communities who powered this country a debt of gratitude. For decades, it has been a scandal that the government took money that could have gone to miners and their families. Today, that scandal ends, and the funds are rightfully transferred to the miners.” He praised campaigners, acknowledging their “victory” in securing justice for the mining community.
Minister for Industry Sarah Jones echoed the sentiment, noting, “Miners powered our industries and our homes for decades. That’s why we must right the wrong that has denied them the decent pension they deserved. We are handing over the £1.5 billion that has, for years, sat in reserve when people needed it most. This will end an historic injustice and ensure an average £29 weekly increase, representing a 32% boost in payments.”
Gary Saunders, chairman of the Trustees of the Mineworkers’ Pension Scheme, welcomed the news: “As a Trustee board, we are delighted to put more money in our members’ pockets. We are also grateful to the many members and MPs who have shown steadfast support for the scheme over the years.”
This move represents a significant victory for the mining communities and their advocates, marking the end of a long-standing grievance over pension allocations.
