Sarah Champion MP welcomes return of BCSSS investment reserve to former mineworkers and their families

Hundreds of former mineworkers in Rotherham will receive a significant uplift in their weekly pension, overturning an historic injustice and ensuring fair payouts for years to come.

The Government has announced that it will return the Investment Reserve of the British Coal Staff Superannuation Scheme (BCSSS) to former mineworkers. Following the privatisation of the coal industry in the 1990s, the government agreed to act as the guarantor of both the BCSSS and its sister scheme, the Mineworkers’ Pension Scheme (MPS). This arrangement has seen the government receive billions from the scheme’s surpluses, without ever contributing to the fund.

The announcement follows similar measures in respect of the MPS implemented last year.

Following the announcement by the Chancellor in today’s Budget, Energy Secretary Ed Miliband confirmed that the move will mean a 41% per cent boost to the annual pensions of 40,000 former mineworkers across the UK – an average increase of £100 per week for each member.

The trustees of the scheme are expected to make the first uplifted payments to members before the end of the year, with payments backdated to coincide with when the changes were implemented to the Mineworkers’ Pension Scheme.

Sarah Champion, Member of Parliament for Rotherham, welcomed the announcement, saying:

“For too long former miners in Rotherham have been denied the pension settlement they have earned.’

‘Today, Labour ends this injustice and delivers what is rightfully owed back to mining families.’

‘I have been campaigning for years to give back the funds that are rightfully theirs. I am delighted that the Labour Government has listened and that, from now on, mineworkers pension funds will only be used to support former mineworkers in their retirement.”

Energy Secretary Ed Miliband said:

“We owe the mining communities who powered this country a debt of gratitude.’ 

‘Today, I am delighted that we are rightfully transferring the BCSSS investment reserve back to former mineworkers. I pay tribute to the campaigners who have fought for a fair deal - without them this would not have happened.”

Chris Kitchen, General Secretary of the NUM said:

“The NUM welcomes the BCSSS announcement in the Budget and the Labour Government’s recognition that there were two pension Schemes in the mining industry that suffered historic injustice which they have sought to correct.

“The additional pensions this will provide will benefit not just the pensioners, but our former mining communities devastated by the closure of our industry.

‘A commitment made, a commitment delivered.”