Former miners and their families are celebrating a “historic” increase in their pensions after the government handed over a £2.3bn reserve fund providing increases worth up to £100 a week and backdated lump sums averaging £5,500.
British Coal Staff Superannuation Scheme members’ pensions will rise by 41% from Tuesday after the government’s share of the scheme’s surplus was transferred. The move brings long-awaited relief to tens of thousands of former workers who had fought for years against a rule that allowed the state to take half of all surpluses while members bore all the risk.
The changes primarily affect around 40,000 former employees who worked in non-mining mines, including more than 5,000 women. Similar reforms were introduced last year to the miners’ pension system, which covers around 100,000 former miners.
For many, the recovery marks a turning point after years of financial worries. Julie Creed, from Mansfield, who worked in British Coal’s payroll 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, no longer had to worry about whether she could afford to heat their house after 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 drained from the schemes over decades. Ministers announced an end to the agreement in the 2024 autumn budget, describing it as a long-overdue correction of an injustice rooted in the privatization of the industry.
Cheryl Agius, chairwoman of the pension system’s board of trustees, called the change a milestone. She said it was “the result of a year of determination, commitment and collaboration” and a clear break with the past.
Steve Yemm, the Labor MP for Mansfield, whose constituency has the highest proportion of former miners in the UK, said the move provided justice but warned more work remained. He said members were still seeking clarity on how future surpluses would be shared and urged ministers to quickly reach a fair agreement.
Energy Secretary Ed Miliband paid tribute to former miners and activists and said the increase would give thousands a better retirement. He added that the 41% increase just before Christmas was a recognition of the contribution of miners and the hardship many have endured since the industry’s decline.
