18 Mar
Question
Mineworkers’ Pension Scheme

Analysis of the Question Session on The Mineworkers’ Pension Scheme
The House of Commons session surrounding inquiries about changes to the Mineworkers’ Pension Scheme (MPS) was pivotal in addressing past injustices and discussing financial arrangements for former miners. Key Issues and Significant Points:

  1. Legislative Background and Historical Injustice: The Labour Government's efforts to rectify the historical injustices through uprating payments to MPS recipients were highlighted. Sarah Jones, representing the Labour Government, reported a 32% increase in pension payments for over 100,000 recipients, an average boost of £28 per week, marking a significant rectification measure.
32% increased pension payments for MPS recipients

Over 100,000 miners benefit from the uplift.

  1. British Coal Staff Superannuation Scheme (BCSSS): Speakers such as Nick Smith, Jake Richards, and Elaine Stewart urged further action on the BCSSS, another initiative affecting former mining industry employees. Concerns were raised about the trustees' transparency and the necessity for accelerated reforms, echoing the urgency voiced by representatives for both mineworkers and British Coal staff.
£28 additional weekly pension income

Average amount received by pension recipients in the scheme upgrade.

  1. Government Response and Commitment: Sarah Jones reassured the involved MPs about continued discussions with the trustees of both schemes and collaborative work with the Government Actuary’s Department to assess surplus-sharing and future arrangements. Acknowledgement of differences in scheme operation was paramount, particularly in addressing respective deficits and safeguarding pensioner rights.
40,000 members in the BCSSS, with 5,000 women

Demonstrates the reach of the BCSSS and its unique participant profile.

Outcome

The session showcased cross-party advocacy for financial justice concerning former coal industry workers, emphasizing the government's proactive role via legislative reforms. Increased financial support for MPS recipients was a key achievement, yet unresolved matters in the BCSSS signal a need for continued ministerial and parliamentary oversight to ensure equitable solutions for all stakeholders.

Key Contributions

Nick Smith
Labour

Expressed gratitude for the increased MPS payments for 1,600 miners in his area, and urged for addressing concerns of the British Coal staff superannuation scheme.

Jake Richards
Labour

Acknowledged the resolved MPS injustice and sought reassurance for BCSSS members in his constituency regarding potential fund transfers.

Elaine Stewart
Labour

Highlighted concerns of BCSSS members, emphasizing the importance of addressing fund transfers to prioritize their financial security, including significant numbers of female beneficiaries.

Sarah Jones

Outlined legislative progress on MPS increases and engaged in ongoing discussions regarding BCSSS member issues, signaling the government's commitment to resolving differences between the schemes.

Original Transcript
Nick Smith
Blaenau Gwent and Rhymney
Lab
Question
UIN: 903231

3. What assessment he has made of the potential impact of changes to the mineworkers’ pension scheme on the living standards of the recipients of that pension.

Jake Richards
Rother Valley
Lab
Question
UIN: 903233

5. What assessment he has made of the potential impact of changes to the mineworkers’ pension scheme on the living standards of the recipients of that pension.

Elaine Stewart
Ayr, Carrick and Cumnock
Lab
Question
UIN: 903239

11. What assessment he has made of the potential impact of changes to the mineworkers’ pension scheme on the living standards of the recipients of that pension.

The Minister for Industry
Sarah Jones
11:48

This Labour Government have ended the historic injustice of the mineworkers’ pension scheme. At the end of November last year, the first uprated payments for the pension scheme landed for over 100,000 miners and their families.

That is an average increase of 32% on their monthly payments, or an average additional £28 a week.

Nick Smith
00:03

I thank the Minister for her answer and for her hard work to increase payments to mineworkers and their families across the country. After digging for coal for many years, 1,600 miners and their families have received an uplift of nearly £30 a week in my constituency of Blaenau Gwent and Rhymney.

However, progress is still needed on the staff superannuation scheme. The trustees of that scheme confirmed to me that the average age of pension members is 76, so with time marching on, will the Minister outline the next steps to help members of the staff scheme?

Sarah Jones
11:49

I thank my hon. Friend for his remarks; he is right to talk about the British Coal staff superannuation scheme. The initial focus of our work was on the mineworkers’ pension scheme, which was in our manifesto.

We had to work at pace on that commitment, and we are working with the Government Actuary’s Department on how the surplus-sharing arrangement will work going forward. That big piece of work is under way, but my hon. Friend is right to point to the tens of thousands of people who are in the BCSSS.

I too have met the trustees, and we are working as fast as we can through the issues associated with that scheme.

The two schemes are different—they operate in different ways—but the Government are the guarantor for both of them, and I will reconvene trustees to continue discussions with them and take this matter forward.

Jake Richards

At the last general election, I made a promise to ex-miners in my constituency that a Labour Government would deliver justice on the MPS investment reserve fund and return it to its members.

I am delighted that at the end of last year, this Government delivered, providing a boost of more than 32% to their pensions. However, in my constituency there are more than 600 BCSSS members, who are still really concerned about this issue, so I would welcome the Minister’s answer on that.

Can she reassure them and me that the trustees will continue to update the members of that scheme? At the moment, there is a degree of uncertainty on what progress can be made over the coming months.

Sarah Jones

I thank my hon. Friend for his concern for his constituents who are in the BCSSS. I am very receptive to the calls from BCSSS trustees. I wrote to the Chief Secretary to the Treasury at the end of last year to begin discussions.

We have received a positive response from him, and we are now taking the next steps to move this process forward.

Sarah Jones
11:54

My hon. Friend is right to point out that there are about 40,000 people in this scheme. About 5,000 of them are women, unlike the mineworkers’ pension scheme, of which the vast majority of members are men.

The two schemes are different and operate in a different way, because in 2015 the BCSSS had run two deficits and was at risk, so there had to be an intervention from Government. The two schemes operate differently and have to be looked at differently.

The Government Actuary’s Department team is working its way through the mineworkers’ pension process, and we are now working with officials on this issue. I am meeting officials later today to talk about it more to see what we need to do.

I stress that this is very complex—we are talking about billions of pounds-worth of assets—but we are absolutely receptive to calls from the trustees, and I will meet with them again soon.

All content derived from official parliamentary records