By Bill Heaney
A historic injustice will be reversed as 7,000 former Scottish miners finally have a £1.5 billion pension scheme transferred to them, boosting their pensions by 32 per cent.
Almost 7,000 former miners in Scotland will benefit from a £1,500 boost in their pensions, with the Labour government handing back a £1.5 BILLION pension fund. The move overturns an historic injustice and will ensure fair payouts for years to come.
Following the announcement in the budget, Kirsty McNeill MP, pictured right, Minister for Scotland and MP for the mining community of Midlothian, has welcomed that the move will mean a 32 per cent boost to the annual pensions of almost 7,000 miners in Scotland – an average increase of £29 per week for each member.
When the Conservative Government privatised British Coal in 1994, it struck a deal that entitled it to half the surplus cash from the pension scheme in return for a guarantee that miners’ pensions would rise in line with inflation.
But the scheme has continued to produce strong returns – meaning the UK government has received £4.8 billion over the last 30 years without paying any funds into it.
Former miners and their families argued for decades that money intended for miners’ retirements should be in former miners’ pockets rather than the government’s coffers.
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.
In Scotland, over £10 million a year will be added to the pensions of Scottish miners. A government review will also ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months.
UK Government Minister for Scotland and MP for the mining community of Midlothian, Kirsty McNeill MP said: “Miners powered Scotland for decades. In my constituency of Midlothian and other coalfield communities across the country, thousands of workers made the treacherous journey below ground to mine the coal which kept our factories running and the lights on at home.
“As the miners’ memorial in Dalkeith says, they spent their lives in the dark so that others might have light.
“For decades, it has been a scandal that the government has taken money that could have been passed to those who needed it most. It’s right that the money is back where it belongs, in the pockets of miners and their families.
“Campaigners have spent years fighting for pensions justice and I am delighted this Labour government set about delivering this change as soon as we were elected. Almost 7,000 retired miners in Scotland will see their pension jump by £1,500 on average. That will make a real difference to so many people in Midlothian and across Scotland’s proud mining communities.”
- Full Scotland constituency breakdown of beneficiaries below, listed in order of beneficiaries
- Scottish figures highlighted = 6,884 (almost 7,000)
- Average increase = £29 per week
- Scottish total increase + £199,636 each week (ie £200k) or £10.381 million a year
- On average, these changes will deliver a 32% boost to annual pensions