The UK chancellor has scrapped a controversial deal that saw the government receive billions of pounds from the miners’ pension scheme.
Rachel Reeves announced on Wednesday that the entire miners’ pension scheme would be handed over to former coal miners and their families.
Under a deal struck when British Coal was privatized in 1994, the government is entitled to half of the cash remaining in the fund – having received £4.8bn over the past 30 years.
The BBC understands the changes will transfer around £1.5bn into the pensions of 112,000 former coal miners and their families.
Reeves said this means “working people who power our country will get the fair pension they deserve”.
Gary Saunders, chairman of the Miners’ Pension Scheme trustees, said: “We are delighted to be able to put more money into members’ pockets.
“We are also grateful to the many members and MPs who have expressed support for the scheme on this matter over the years.”
One pension trustee said the fund “will be writing to all members soon with the good news”.
During the election, Labor promised to give leftover superannuation funds back to MPs.
March, British Broadcasting Corporation revealed More than £420m of the scheme has flowed into government coffers over the past three years.
This is despite a cross-party group of MPs publishing a report in 2021 recommending the government stop withdrawing funds and pay back some of the money it has received.
Conservative ministers rejected the proposals. Figures released to the BBC under the Freedom of Information Act show the government has since received three annual payments worth £142.4m.
Tens of thousands of households, mainly in the East Midlands, Yorkshire and the North East of England, benefited from the pension scheme, which was taken over by the government when British Coal was privatized in 1994.
The agreement was struck between the then Conservative government and the scheme’s trustees in exchange for government guarantees that the value of miners’ pensions would not be reduced.
But campaigners have long argued the deal is unfair to former miners and their families.
The then energy secretary, Graham Stuart, said in December that the government had received £4.8 billion from the pension scheme since 1994.
Energy Minister Ed Miliband said: “It has been a scandal for decades that the government took money that could have been transferred to miners and their families.
“Today, the scandal is over and the money is legally transferred to the miners.
“I salute the activists who are fighting for justice – today is their victory.”
