MINISTERS who announced they are reversing an ‘injustice’ in order to finally put more money in ex-miners’ pockets after blaming the Conservative Party for pillaging a pension pot have announced it will take effect in just three weeks’ time.
The 32 per cent hike - which will equate to a weekly rise of £29 for members of the Mineworkers’ Pension Scheme (MPS) - was confirmed by Chancellor Rachel Reeves last week following years of campaigning by Barnsley South MP Stephanie Peacock alongside her coalfield colleagues.
The Chronicle can confirm it will come into effect on November 29 following the landmark decision and the reserve fund - now worth £1.5bn - will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards for their labour.
Marie Tidball, MP for Penistone and Stocksbridge, welcomed this week’s confirmation of when extra cash will make its way to miners.
“It is a national scandal that former miners in Dodworth, and those living across our constituency and indeed Barnsley, have had to fight for so long for the pension settlement they deserve,” she told the Chronicle.
“Labour ends this injustice and delivers what is rightfully owed back to mining families.
“To former miners and their families in Dodworth, we wholeheartedly thank you for building and powering our country for generations.
“This is a victory for the relentless campaigning of the trustees and members.
“Labour is righting a wrong that successive Tory governments failed to address, returning what is rightly owed to mining families, ending this historic injustice.
“Thank you to Stephanie for her hard work to make this change happen.
“I am also meeting with Dodworth’s local National Union of Mineworkers (NUM) representative to discuss what this means for our local mineworkers, and how we can support our community further.”
When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.
The scheme has continued to produce strong returns despite ex-governments never paying any funds into it.
Gary Saunders, chair of the trustees of the MPS, added: “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.
“The change will mean a little bit more money, which is always helpful, especially at times when money is tight.
“But more than that, it’s recognition.
“The way that the government guarantee was done originally at privatisation was done just to victimise us.
“We were thrown out of the MPS to close the scheme, then ring-fence the money for themselves, and even deprive us of the benefit of the money that we put in.”
Trustees are responsible for deciding how the fund is distributed among their 112,000 members - more than 7,000 of which live in Barnsley - and are now working at speed to deliver the bonus into pension pay packets.
Barnsley North MP Dan Jarvis said: “The Labour government’s historic budget marked a new, better chapter for both our town and our country.
“Out of the many positive announcements, I’m particularly proud that we are ending the injustice of the Mineworkers’ Pension Scheme.
“By fulfilling our promise to transfer the investment reserve fund back to members, the Labour government is now putting money back in the pockets of miners.”
