Former mineworkers and their families are celebrating a “historic” boost to their pensions after the government handed over a £2.3bn reserve fund, delivering increases worth up to £100 a week and backdated lump sums averaging £5,500.
Members of the British Coal Staff Superannuation Scheme will see their pensions rise by 41% from Tuesday, following the transfer of the government’s share of the scheme’s surplus. The move brings long-awaited relief to tens of thousands of former workers who had campaigned for years against an arrangement that allowed the state to take half of any surplus while members bore all the risk.
The changes mainly affect around 40,000 former staff who worked in non-mining roles at collieries, including more than 5,000 women. Similar reforms were introduced last year for the Mineworkers’ Pension Scheme, which covers about 100,000 former miners.
For many, the uplift marks a turning point after years of financial anxiety. Julie Creed, from Mansfield, who worked in British Coal’s salaries office, said the extra income would make a “massive difference” as household bills continue to rise. She added that her mother-in-law, now in her 80s, would no longer have to worry about whether she could afford to heat her home following the death of her husband, who worked in the mines.
Campaigners had previously warned that some pensioners were “dying in abject poverty” after billions were taken from the schemes over decades. Ministers announced an end to the arrangement in the autumn budget of 2024, describing it as a long-overdue correction of an injustice rooted in the industry’s privatisation.
Cheryl Agius, chair of trustees of the pension scheme, called the change a landmark moment. She said it marked “the result of a year of determination, advocacy and collaboration” and represented a clear break from the past.
Steve Yemm, the Labour MP for Mansfield, whose constituency has the highest proportion of former mineworkers in the UK, said the move delivered justice but warned that more work remained. He said members were still seeking clarity over how future surpluses would be shared and urged ministers to reach a fair agreement quickly.
Energy secretary Ed Miliband paid tribute to former mineworkers and campaigners, saying the uplift would give thousands a better retirement. He added that receiving a 41% increase just before Christmas was recognition of the contribution mineworkers had made and the hardship many had endured since the industry’s decline.
Read more:
Former mineworkers celebrate ‘historic’ £100-a-week pensions boost