Thousands of former Nottinghamshire mineworkers receive first pension increase

The payment follows the Government’s reversal of an historic injustice, leading to £1.5 billion being transferred to their pension scheme last month.

Former mineworkers will receive the cash in their pockets today, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.

The uplift represents an average 32 per cent rise to the annual pensions of nearly 112,000 former mineworkers and their dependents across the UK – an average increase of £29 per week for each member.

Secretary of State for Energy Ed Miliband said: “This government has kept our promise to return money rightfully owned to the ex-miners and their families – and today thousands of people will receive the money they deserve in their pension as a result.

“Today marks an end to a decades-long injustice that has denied thousands across the country the decent pension that they so undeniably deserve.

“We have delivered on our promise to right this wrong and I hope members and their families are able to enjoy the victory that they have waited far too long for.”

The Trustees of the Mineworkers’ Pension Scheme, said: “This month marks a historic milestone for the members of our Scheme with the first instalment of pension resulting from the recent Investment Reserve transfer being paid.

“As Trustees, we're delighted that we've been able to get this extra money into our members' pockets so quickly.

“This has been made possible due to the swift action of the government in making good on its manifesto commitment but also as a result of the hard work of the team that supports the scheme.

“We would also like to thank again the many members and MPs who have shown support of the Scheme on this matter over the years.

“We are now looking forward to discussing our scheme's surplus sharing arrangements with the Government in the coming months and sharing the outcome with our members as soon as we can.”

The Energy Secretary and Minister for Industry Sarah Jones met members and trustees of the scheme in October at the National Union of Mineworkers’ headquarters in Barnsley, after the government delivered on a longstanding campaign ask from ex-pit workers to transfer the investment reserve of the Mineworkers’ Pension Scheme back to members.

When British Coal was privatised in 1994, the government agreed to take half of any surplus generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.

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.

The government is now conducting a review of the surplus sharing agreement with the scheme trustees – ensuring miners and their families benefit for years ahead, with next steps to be set out in the coming months.