Former miners to finally receive money kept from pensions for decades

The government has announced moves to overturn an “historic injustice” involving former mineworkers who have had money withheld from their pensions since 1994.
Following the news in Wednesday’s Budget, Energy Secretary Ed Miliband said more than 100,000 former mineworkers will receive £1.5 billion of money kept from their pensions.
He confirmed the move will mean a 32% increase to the annual pensions of 112,000 former mineworkers, an average increase of £29 per week for each member.
When the Mineworkers’ Pension Scheme was privatised in 1994, it was agreed that 50 per cent of all surplus money generated by the scheme would be paid directly to the state, as buffer against any future deficit.
However, it left many members significantly worse off, with the average former miner getting a pension of just £84 a week – and widows even less. The surplus fund, now worth £1.5 billion, will be handed back to the pension scheme.
Miliband said: “We owe the mining communities who powered this country a debt of gratitude.“For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.
“Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice, today is their victory.”
Minister for Industry Sarah Jones said: “Miners powered our industries and our homes for decades. That’s why we have to right the wrong that has denied them the decent pension they deserved.“We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most.
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“This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay, an increase of 32%.”Gary Saunders, chairman of the Trustees of the Mineworkers’ Pension Scheme, said: “As a Trustee board we are delighted we will be able to put more money in our members’ pockets.“We are also grateful to the many members and MPs who have shown support of the scheme on this matter over the years.”
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