Former miners in Fife to receive payment increase as government ends pension 'injustice'

Following the announcement in this week’s budget, Energy Secretary Ed Miliband confirmed the move will mean a 32 per cent boost to the annual pensions of 112,000 former mineworkers across the UK – an average increase of £29 per week for each member.

The news has been welcomed by Fife politicians.

Richard Baker, MP for Glenrothes and Mid-Fife, said: “It is a national scandal that former miners in my constituency – which I understand has the highest concentration of miners in Fife – have had to fight for so long for the pension settlement they deserve.

“Labour has ended this injustice and delivered 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 Glenrothes and Mid Fife.

”Cllr Tom Adam was central to the campaign locally through his involvement with the National Union of Miners (NUM) – and his determination to never give up has finally delivered for mining families.”

Councillor Tom Adam, who has campaigned for pension justice since 1997, said: “This announcement is absolutely brilliant for ex-miners and their beneficiaries.

“We’ve finally been given back something that should never been taken away from us in the first place.

“I was cock-a-hoop when the budget was announced, and I’m delighted that the Labour Government has fulfilled what they said they would in their manifesto.

“A lot of credit too has to go to Chris Kitchen of the NUM for pushing this.”

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. 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.

The trustees are 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.