Former mineworkers have received their first pension increase following the government transferring £1.5 billion to the Mineworkers' Pension Scheme.
Over 100,000 miners across the country to get first weekly pension boost, a 32% increase to their pension
the increase comes after the government ended a historic injustice, ensuring fair payouts for years to come
Over 100,000 former mineworkers across the UK will today get a boost to their pension - with people seeing an average £29 extra to their weekly payment.
The payment follows the government's reversal of an historic injustice, leading to £1.5billion being transferred to their pension scheme last month.
Former mineworkers will receive the cash in their pockets today, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.
The uplift represents an average 32 per cent rise to the annual pensions of nearly 112,000 former mineworkers and their dependents across the UK - an average increase of £29 per week for each member.
Secretary of State for Energy Ed Miliband said:
This government has kept our promise to return money rightfully owned to the ex-miners and their families- and today thousands of people will receive the money they deserve in their pension as a result.
Today marks an end to a decades-long injustice that has denied thousands across the country the decent pension that they so undeniably deserve.
We have delivered on our promise to right this wrong and I hope members and their families are able to enjoy the victory that they have waited far too long for.
The Trustees of the Mineworker' Pension Scheme, said:
This month marks a historic milestone for the members of our Scheme with the first instalment of pension resulting from the recent Investment Reserve transfer being paid. As Trustees, we're delighted that we've been able to get this extra money into our members' pockets so quickly.
This has been made possible due to the swift action of the government in making good on its manifesto commitment but also as a result of the hard work of the team that supports the Scheme.
We would also like to thank again the many members and MPs who have shown support of the Scheme on this matter over the years. We are now looking forward to discussing our Scheme's surplus sharing arrangements with the government in the coming months and sharing the outcome with our members as soon as we can.
The Energy Secretary and Minister for Industry Sarah Jones met members and trustees of the scheme in October at the National Union of Mineworkers' headquarters in Barnsley, after the government delivered on a longstanding campaign ask from ex-pit workers to transfer the investment reserve of the Mineworkers' Pension Scheme back to members.
When British Coal was privatised in 1994, the government agreed to take half of any surplus generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.
The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers' Pension Scheme went into deficit. This money was due to be returned to government in 2029.
The government is now conducting a review of the surplus sharing agreement with the scheme trustees - ensuring miners and their families benefit for years ahead, with next steps to be set out in the coming months.
After delivering on the commitment for the Mineworkers' Pension Scheme, the largest pension scheme for miners in the UK, the government has committed to review any proposals set out by the Trustees of the British Coal Staff Superannuation Scheme - the pensions scheme for former pit managers, which is run on a different basis as the government takes no money from any surpluses.
In keeping homes warm and powering industry, mineworkers were the backbone of keeping the country going for decades.
Since July, the government has accelerated Britain's transition, committing unprecedented investment in homegrown clean energy. To support workers, the government has also set up the Office for Clean Energy Jobs to help the next generation of skilled workers to access UK-wide job opportunities that the government's clean energy superpower mission will help create.
Action includes lifting the ban on onshore wind, setting up Great British Energy and announcing a partnership with The Crown Estate to accelerate offshore wind projects, approving four major solar farms, launching the Clean Energy Mission Control centre led by Chris Stark, securing a record pipeline of renewable projects in the latest auction and launching the UK's first carbon capture sites.
Notes
Members receiving an uplift in payments across UK regions:
Wales: 13,156
Scotland: 7,844
North-East: 15,141
North-West: 4,648
Yorkshire & Humber: 29,376
East Midlands: 28,828
West Midlands: 8,805
South-East: 1,683
South-West: 924
Eastern: 481
London: 183
Northern Ireland: 54
Unknown: 271
