Mineworkers’ Pension Scheme

Gloria De Piero Excerpts

Thursday 14th February 2019 Commons Chamber

[Gloria De Piero (Ashfield) (Lab)]

I thank my hon. Friend the Member for Barnsley East (Stephanie Peacock) for securing the debate, for her excellent speech and for the opportunity to speak very briefly on an issue that I am extremely passionate about. Many of us are now familiar with the shocking headline figures behind the mineworkers’ pension scheme story. The Government have received nearly £4.5 billion from the MPS since 1994. They have never had to pay a penny into the scheme in their role as guarantor and they are still pocketing in the region of £142 million a year. Those figures do not even include any moneys that they have received from the other coal pension scheme—the British Coal staff superannuation scheme, from which they have also made billions of pounds.

[Wayne David (Caerphilly) (Lab)]

Does my hon. Friend agree that what is absolutely fundamental is that at the time of privatisation, any surplus was envisaged as a safety net, not a cash cow for the Government?

[Gloria De Piero]

My hon. Friend absolutely hits the nail on the head.

[David Hanson (Delyn) (Lab)]

Just to confirm what my hon. Friend the Member for Caerphilly (Wayne David) said, I served on the Labour side on the Bill that privatised the coal industry in 1994, and those guarantees were given at that stage.

[Gloria De Piero]

My right hon. Friend is absolutely right to make that point. What the headline figures that I have quoted do not tell us are the personal stories of hardship that our ex-miners and their widows are facing. The average weekly pension is not much more than £80 a week. It is hardly a sum that someone could live a luxury lifestyle on. MPS pensioners rightly feel aggrieved at seeing the profits from their pension investments being used to boost the Treasury’s coffers. An MPS pensioner from my constituency called into my office recently to show me his recent pension statement. He had received the news that, thanks to a 3.4% increase to his guaranteed pension and a 4.2% bonus, his pension was going up to the grand total of £74.71.

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

Will my hon. Friend remind the Government that we are talking about deferred income earnt by miners, not a gift that we are blessing them with? It is the miners’ money, not anyone else’s.

[Gloria De Piero]

That is why it is clear that the 50:50 surplus sharing arrangement put in place when the Government became guarantor needs to be renegotiated.

[Mary Creagh (Wakefield) (Lab)]

I thank my hon. Friends the Members for Ashfield and for Barnsley East (Stephanie Peacock) for making such powerful speeches. Does my hon. Friend agree that, at a time when we have had 40,000 excess deaths, many of them old people—the highest level for 40 years in this country—and when we see pensioners’ income under attack from higher inflation and risks to their benefits, such as free TV licences, this is a wrong that must be righted by the Minister? These communities were devastated when their pits closed. These people lost income during their lifetime and are now being denied it in retirement.

[Gloria De Piero]

Absolutely, and the Government have made far more money than was ever forecast.

[Sir Kevin Barron (Rother Valley) (Lab)]

I am grateful to my hon. Friends the Members for Ashfield and for Barnsley East (Stephanie Peacock) for raising this matter. The calculation made in the privatisation in 1993-94 was done on the basis that a lot of coal mines were still open at that time. Clearly that is not the case now. This is a milk cow for Government. I do not know how many years the Government are going to keep looking at this to try to get some sense for it, but what is happening is wholly wrong. People can quote the increases in miners’ pensions, but often a lot has been lost because these people are on means-tested benefits to start with. We should recognise that.

[Gloria De Piero]

My right hon. Friend makes a very good point from a wealth of experience of campaigning on this issue.

I, Labour colleagues from other coalfield constituencies, the National Union of Mineworkers, other campaigners and, crucially, the trustees of the mineworkers’ pension scheme—the Minister shook her head when my hon. Friend the Member for Barnsley East raised that point, but I and other colleagues have met them and they have told me to my face, “This is not right”—know that this is unfair and that the schemes need to be renegotiated. Approaches have been made to the Department for Business, Energy and Industrial Strategy, but no meaningful efforts to engage have been made by the Government. That has to change and quickly, because the number of MPS pensioners is decreasing every year. Action needs to be taken now, so I ask the Minister to commit to giving ex-miners a fairer share of their pension fund surpluses now.