British Coal Staff Superannuation Scheme
Debate between Chris McDonald and Steve Yemm(1 month, 1 week ago)
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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.
Oral Answers to Questions
Debate between Chris McDonald and Steve Yemm(6 months, 3 weeks ago)
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Steve Yemm (Mansfield) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Chris McDonald)
In the autumn Budget, the Chancellor announced the transfer of the £2.3 billion reserve to members of the British Coal staff superannuation scheme. Almost 40,000 former mineworkers and colliery staff received their first bonus increase before Christmas, with an average uplift of £100 a week, or a one-off £5,500 lump sum for backdated pensions. That is the difference that this Labour Government are making for coalfield communities.
Steve Yemm
On behalf of many former mineworkers in my constituency who have had that pension reserve fund returned, I thank the Minister and his colleagues for supporting coalfield communities like mine. He will also be aware of my letter last month asking about the future sharing arrangements for scheme surpluses for both the mineworkers’ pension scheme and the BCSSS. Will he provide some clarity on how the Government intend to proceed to resolve this final outstanding injustice?
Chris McDonald
I thank my hon. Friend for the leadership that he has shown on this issue in the House, and for his letter last month. I can inform him that I am meeting the trustees of the mineworkers’ pension scheme on 4 February and of the British Coal staff superannuation scheme on 18 February. The focus of both those meetings is how we can deal with surplus sharing for the future, and I am keen for it to be resolved as soon as possible.