Justice call as Government urged to top up miners’ pensions by adding £1.2bn

THE UK Government has been urged to give miners “what they deserve and have earned” after a new report has highlighted the “historic injustice” in a pension scheme for mineworkers.

The Business Energy and Industrial Strategy committee has published a report urging the government to urgently transfer

£1.2 billion to the pension fund.

The committee says the move would give a £14 increase to the average weekly pension of £84, adding that the “vast sums” paid from the scheme to the Government meant it was was “unconscionable” that many former miners were struggling to make ends meet.

The committee said since privatisation of the scheme in 1994, the Government has received 50 per cent of surpluses in its value, in return for providing a guarantee that the value of pensions will not decrease.

At the time it was expected that the Government would receive around £4bn from the arrangement in today’s money, but that has increased to £4.4bn, and the Government is also due to receive at least another £1.9bn on top of 50% off any future surpluses, said tje report.

The Government has not paid any funds into the scheme in return, noted the MPS. The report states: “The Government’s entitlement to 50% of surpluses is not proportionate to the degree of financial risk it actually faces.”

Ian Murray, Labour MP for Edinburgh South, said the report would be “welcomed” and added: “Miners have long argued that the Government are getting too much out of the pension fund and I hope the report will prompt the Government into urgent action to give miners what they deserve and have earned.”

Former miners wrote to the committee, including Anthony

Marrin, who said: “I find myself having to make cutbacks on my spending to support myself and my wife, who is in ill health.

“I find it hard to understand how the Government can justify maintaining the current 50:50 share agreement when it has already had over £4bn and not contributed a penny towards the scheme.

“In the meantime, thousands of former miners have died not having enjoyed their pensions, also leaving less miners in the scheme.

“Given the amount of money the Government have creamed off our pension pot do they need to get a share of any surplus?”

Committee chairman Darren Jones said: “The Government has benefited from billions of pounds of surpluses since 1994 without having to contribute a pound of taxpayers’ money to miners’ pensions.

“Mining communities have suffered from pit closures for generations, with many pensioners now living on low incomes.

“While the Government’s guarantee to the pension fund has provided vital security... it’s clear that the Government has profited to a far greater extent than originally envisaged.”

He added: “That now needs to change.”