British Coal Staff Superannuation Scheme

Chris McDonald Excerpts

Monday 22nd June 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)]

I start by acknowledging the debt of gratitude that our country owes to our miners and our mining communities. I particularly wish to take this opportunity to note that this year marks the 75th anniversary of the Easington pit disaster, where on 29 May 1951, 83 men died following an underground explosion. I grew up in a mining village just down the road from Easington, and the shadow of that day hung over the community for decades. As a former member of the Easington colliery band, I remember players who were members of the band at that time telling me how they played at the funerals of all 83 men. It will be deeply sorrowful indeed at this year’s Durham miners’ gala to see the Easington colliery band and the colliery banner—no doubt with black drapes solemnly attached—process through the streets of Durham city.

I tell that story to make clear our thankfulness, and my own thankfulness, to those who laboured in our pits, their families and their communities, for they are my family and my community. I want to be clear that every penny in their pension scheme, whether it is the mineworkers’ pension scheme or the British Coal staff superannuation scheme, is theirs by right. The withdrawal of funds by previous Governments is an historic injustice, and one that I am determined to put right with the wholehearted support of the Chancellor of the Exchequer. In this, I am guided by the principle that we transfer as much of the money as possible as quickly as we possibly can to those in receipt of a pension, while also ensuring that sufficient funds are available to pay future pensions. It is in balancing those two aspects that I am currently in discussions with the trustees of both the British Coal staff superannuation scheme and the mineworkers’ pension scheme. I thank the trustees for their constructive and meaningful engagement on behalf of their members.

[Steve Yemm (Mansfield) (Lab)]

I thank the Minister for his understanding of these issues—which is a deep understanding—and his diligence in considering them. I also thank him for meeting me, along with the trustees of both the mineworkers’ pension scheme and the British Coal staff superannuation scheme. I hope the Minister will be around for a significant period of time to see this through at the Budget. I think it is very important that he remains in his place.

[Chris McDonald]

I thank my hon. Friend very much for his good wishes. Perhaps I can return the favour by thanking the hon. Member for Ashfield (Lee Anderson) and my hon. Friends the Members for Blyth and Ashington (Ian Lavery) and for Easington (Grahame Morris), who—along with the National Union of Mineworkers and its general secretary, Chris Kitchen—have been diligent representatives of the mineworkers, their families and their communities.

When British Coal was privatised in 1994, the British Coal staff superannuation scheme closed to the accrual of benefits, and remaining employees were given the right to participate in successor schemes. The Government of the day gave the mineworkers a guarantee that the value of the fund would not decrease, ensuring that pensions would continue to be paid while taking half of any surplus on the investment. The other half could be used to improve benefits through bonus payments. That surplus-sharing arrangement was ended in 2015, but future benefits were fixed, ensuring that pensions could be paid, with the aim of returning the reserve to Government in 2033. Since the 2015 changes, the scheme’s investments have performed well, building up a reserve of £2.3 billion.

Today, there remain almost 40,000 members of the scheme, the vast majority of whom are receiving their pension. Those 40,000 cover the full spectrum of those who contributed to Britain’s mining industry, from former pit workers and supervisors to clerical staff and canteen workers. As of 2024, the average age of members of the scheme was 78, although the hon. Member for Ashfield is obviously much younger than that. The group includes 11,000 widows, with an average age of 84.

As I have mentioned, we owe former mining communities a debt of gratitude for their contribution to national prosperity. We must acknowledge the hard work and sacrifice of coalminers who powered our country for decades. Previous Governments failed to ensure that former British Coal employees got the level of pension that they deserved. Earlier in this debate we heard from my hon. Friend the Member for Blyth and Ashington, and he rightly said that in 2021 the then Business, Energy and Industrial Strategy Committee looked at the mineworkers’ pension scheme and recommended that the Government took no further funds from the scheme, transferred the reserve to scheme members and reviewed the surplus sharing arrangements. The Conservative Government of the day declined to accept those recommendations, and I know that the hon. Member for Ashfield would not have agreed with that. While he was unable to persuade his colleagues at the time, he does not need to persuade Labour Ministers in this Government, because we are determined that these historic wrongs will be righted.

[Linsey Farnsworth (Amber Valley) (Lab)]

I congratulate the hon. Member for Ashfield (Lee Anderson) on securing this debate and thank him for his service down the mines. I say that as a coalminer’s daughter, and I put on record that I am proud of my dad for the work he did. The Minister mentioned the delays caused by previous Governments’ inaction. I am glad that this Government are acting, but every day former miners and mineworkers are passing away. Can he reassure those affected by this injustice in my constituency of Amber Valley that he is working as fast as possible to resolve this issue?

[Chris McDonald]

My hon. Friend is right to raise this issue, and it fits very much with the point I was making about the age profile. I assure her that I am acutely aware of how many miners, miners’ widows and other coal workers are dying every day and every week not in receipt of their pension entitlements. That is why I proceeded as quickly as I could with the initial arrangements for the British Coal staff superannuation scheme last autumn. With the co-operation of the trustees, we are proceeding at pace on both schemes.

[Amanda Hack (North West Leicestershire) (Lab)]

I thank the hon. Member for Ashfield (Lee Anderson) for bringing forward this debate. He will know, because I have spoken to him before about this, that my father-in-law’s pit would fall within his constituency. My constituency of North West Leicestershire has about 2,200 coalminers, of whom a big majority are in the BCSSS. I am reassured by the Minister’s comments about making sure we get fairness. Can he say some more about how these decisions will be made, and how soon we can get fair justice for our miners?

[Chris McDonald]

Yes, I will say more about the work I am doing with the trustees and the timing, as my hon. Friend rightly requests. The Government are implementing the recommendations of the BEIS Committee report from 2021 in respect of the British Coal staff superannuation scheme and the mineworkers’ pension scheme, and we continue to provide a guarantee to the British Coal staff superannuation scheme, ensuring that scheme members’ pensions will always be paid after retirement. We have transferred the £2.3 billion reserve within the scheme for use as a bonus pension. This led to a 41% increase in pension incomes last December, backdated to November 2024. On average, that meant an extra £100 a week for scheme members, and I know that money will be spent in coalmining communities. That is direct support for pensioners and local communities that powered our country for decades.

I am clear, however, that there is still more to do. The Government are discussing proposals for future arrangements for the scheme, including the potential for future surpluses to be used to enhance the benefits for the trustees. The hon. Member for Ashfield asked me if I would commit to working with the trustees, and I can tell him simply: I will, and I am. On timing, he asked me whether the decision will be made at the Budget. I of course leave decisions at the Budget to the Chancellor of the Exchequer, but she is incredibly supportive of the work that I am doing, and I place on the record her support for me in my work and for mining communities.

[Lee Pitcher]

The Minister talked earlier about putting the wrongs right, and those decisions that will be made in the future will hopefully do just that, but once that is done, we want to make sure that they are future-proofed for everyone, regardless of what happens in the future. Will the Minister also commit to ensuring that once those wrongs are put right, that will continue, whoever governs in the future?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. You have had more than one intervention, Mr Pitcher.

[Chris McDonald]

Like my hon. Friend, I sincerely hope that these changes will permanently right the wrongs. It is important that we think carefully about moving as much money as possible out of the scheme, but also ensuring that there are sufficient funds to pay existing pensions.

Let me briefly raise the issue of the mineworkers’ pension scheme. The Government are taking a similar approach to both schemes. In 2024 they transferred the mineworkers pension scheme reserve, increasing pensions by 32%, but I want to reassure members of that scheme that I am also considering proposals for future arrangements put forward by their trustees. Those proposals could further enhance members’ benefits, and we are seeking to do that as swiftly as possible, while also managing the future funding risks.

[Ian Lavery]

I should declare an interest, as probably the only deferred member of the mineworkers’ pension scheme left in the Commons. There is a perception that the Government treat the BCSSS differently from the MPS. There is a belief that some have received preferential treatment—better treatment than others. When the Minister is negotiating with the trustees from both parties, will he ensure that there is equality of justice, across the board, for members of both schemes?

[Chris McDonald]

I am extremely pleased that my hon. Friend has raised that issue, because I know that it concerns members of, particularly, the mineworkers’ pension scheme and people in those communities. I want to reassure members of the mineworkers’ pension scheme that I am endeavouring to ensure that we get as much money out of the scheme as possible. The issue of equality does concern me. However, I am sure my hon. Friend will understand that in the case of both schemes my aim has been to move as much money out as possible, as quickly as possible, for all those members.

I do not see this as a divisive issue between two parts of the mining community, because ultimately both parts of the mining community, whichever scheme they were in, were disadvantaged by Governments of the time. I will take forward the proposals from the trustees, which I hope will further enhance members’ benefits. I want to reassure my hon. Friend, and other members of the mineworkers’ pension scheme, that my top priority is to reach agreement on how best to enhance these pensions as swiftly as possible, so that we can get that funding into the pockets of scheme members.

I opened my speech with some words about the Easington colliery disaster, and I mentioned the Durham miners gala. There is a miners memorial in Durham cathedral, and the words on that memorial are sung by the cathedral choir at the miners festival service on gala day every year, as they will be this year, in a few weeks’ time. I shall be there, playing in the cathedral with my band, and I thought that this might be a suitable moment for us to mark the Easington pit disaster ourselves, here in the House. So I simply say to Members:

“Remember before God the Durham miners who have given their lives in the pits of this county”.

Question put and agreed to.