More than 700 former mine workers across Gedling borough are to get an instant pension boost after the Government overturned a ruling which saw profits from their contribution diverted away.
It means the average claimant will see an extra £29 a week, following Chancellor Rachel Reeves’ decision to hand over £1.5bn.
738 former mineworkers across the borough will be eligible for the pension boost, figures have revealed.
Former workers had long argued that the profit should have been paid to them, as contributors to the scheme.
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.
Former mineworkers and their families have fought for justice for many years. In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.
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 and the government has never paid any funds into it. Therefore, the government is also delivering on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months.
Michelle Welsh MP for Sherwood Forest welcomed the announcement.
She said: “It is a national scandal that former miners in Sherwood Forest have had to fight for so long for the pension settlement they deserve.
“Now, Labour ends this injustice and delivers what is rightfully owed back to mining families.
This is a victory for the relentless campaigning of the trustees, members, and coalfield communities here in Sherwood Forest.”
The trustees are now responsible for deciding how the £1.5 billion fund is distributed amongst their 112,000 members and are now working at speed to deliver the bonus into pension pay packets from November this year.
Steve Yemm, the local MP for Mansfield, was one of the people who backed the campaign.
He said: “It is a national scandal that former miners in the county have had to fight for so long for the pension settlement they deserve.
“Today, Labour ends this injustice and delivers what is rightfully owed back to mining families.
“This is a victory for the relentless campaigning of the trustees, members, and coalfield communities here in Nottinghamshire.”
Energy Secretary Ed Miliband said: “We owe the mining communities who powered this country a debt of gratitude.
“For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.
“Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice- today is their victory.”
