Mineworkers’ Pension Scheme

Grahame Morris Excerpts

Thursday 14th February 2019 Commons Chamber

[Stephanie Peacock]

My hon. Friend is absolutely right. I want to make it clear at this stage that my complaint is not with the deal at large. There are some concerns over the details of the bonus element of the pension, whereby disappointing investment returns could see bonuses lost over time and members’ pensions worse off by around 30% in real terms—I intend to press the Minister on that issue later—but like the trustees I acknowledge that elements of the deal are beneficial.

[Grahame Morris (Easington) (Lab)]

I compliment my hon. Friend on securing this really important debate. Just to echo her comments, the nation owes a debt of honour to the miners and mining communities for providing the fuel that powered a nation. Many miners died prematurely, including my own father in his 50s and my grandfather in his early 50s. What will happen to the surplus when the last of the miners and their beneficiaries have passed away? Where will that surplus go, and is that driving the Government’s actions?

[Stephanie Peacock]

My hon. Friend makes a really important point. I am sure the Minister has heard it and will respond in due course.

The guarantee has provided a safeguard that has allowed the trustees to follow higher-risk, and subsequently higher-value, investments that have proved lucrative.

--- Later in debate ---

[Claire Perry]

The hon. Lady has made a valid point but, as she has also said, if the scheme had been reviewed at that point, many more thousands of people would have received a higher pension. The decision not to conduct a review was made partly because of the volatility that is inherent in a scheme for which the Government act as guarantor, and partly because, notwithstanding the idea that this is cash that sits in the Government’s coffers, the Government have no money of their own. In many instances, the money that has come into the scheme has been spent directly in the coalfield communities. We have spent more than £1 billion —[Interruption.] Hang on. We have spent more than £1 billion of Government money in the coalfield communities over the last 20 years, and we have committed an additional £70 million since 2010. The point is that, if money comes to the Government, it is part of the Government’s general receipts and can then be recycled. That money has contributed to the benefits that many other pensioners have received.

[Grahame Morris]

Will the Minister give way?

[Claire Perry]

Let me make some progress. [Interruption.]