British Coal Staff Superannuation Scheme

Debate between Chris McDonald and Linsey Farnsworth

Monday 22nd June 2026 Commons Chamber

[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.