Thousands of former mineworkers across the UK are celebrating a landmark victory as they receive a significant, long-awaited boost to their retirement income. This follows a government decision to end a controversial arrangement that saw it take half of the surplus from their pension fund.
A 'Historic' Victory for Pension Justice
The change, announced in the Autumn Budget of 2024, has now taken practical effect. Members of the British Coal Staff Superannuation Scheme (BCSSS) are seeing their pension payments increase by a substantial 41%, equating to around £100 more per week. Furthermore, they will receive an average lump sum payment of £5,500, backdated to when the unfair surplus-sharing agreement was terminated.
This resolution directly addresses years of campaigning and reports of former workers facing severe financial hardship in retirement. The government has transferred its £2.3 billion reserve fund back to the scheme, facilitating these payments. The move primarily benefits 40,000 individuals who held non-mining roles at collieries, including more than 5,000 women.
Life-Changing Impact for Retirees
For many pensioners, the additional income is transformative. Julie Creed from Mansfield, who worked in a British Coal salaries office, stated the money was "going to really help" with rising living costs. She highlighted the impact on her elderly mother-in-law, whose husband was a mineworker: "It’s made a massive difference to her... so that means she’s not got to be worrying whether she can afford to put the heating on."
This adjustment brings the pensions of these former public sector employees more in line with their peers. It follows similar changes made last year to the separate Mineworkers’ Pension Scheme, which has around 100,000 members.
The Fight for Fairness Continues
While campaigners hail this as a historic moment, some note that the battle is not fully over. Steve Yemm, the Labour MP for Mansfield—a constituency with a high proportion of former mineworkers—welcomed the justice served but pointed out ongoing concerns. "I am acutely aware members of each scheme have not been provided the same clarity or resolution in relation to future sharing arrangements for ongoing scheme surpluses," he said, pledging his continued support for a fair, long-term agreement.
Cheryl Agius, chair of the BCSSS trustees, called it "a historic moment – the result of a year of determination, advocacy and collaboration." Energy Secretary Ed Miliband paid tribute to the mineworkers and campaigners who fought to end "this decades-long injustice," adding that the uplift provides them with "the retirement they deserve."
