Mineworkers’ Pension Scheme

Debate between Lee Anderson and Justin Tomlinson

Thursday 16th May 2024 Commons Chamber

[Justin Tomlinson]

Absolutely, but nobody knew how this would go when the deal was struck. At the time the deal was struck, it was deemed to be fair, but like many other pension schemes it could easily have gone the other way. If it had, we would not now be having a debate to say, “Well, we need to excuse the taxpayer.” It was a fair deal at the time, and we seek to ensure that it continues to overdeliver.

[Lee Anderson]

The Minister said that it was a fair deal at the time. I was working down the pit at the time. I assure him that nobody I worked with thought that it was a fair deal; we thought that it was forced upon the trustees. It was, “Take it or leave it.” It has proved not to have been a fair deal. As I said, when the last miner dies, billions of pounds will go to the Treasury. We have received a 50% surplus in return. Does the Minister think that is fair—yes or no?

[Justin Tomlinson]

That presumes the investments will continue to return at the rates they have; they could just as easily go the other way, which I suspect is why the trustees were reluctant to release the guarantee. However, to be clear, I remain open to exploring options for improvements to the scheme, and would welcome any suggestions that the trustees wish to make. The door is firmly open.

Future outcomes are not known. Any market volatility could impact future scheme valuations, and the guarantee will provide even greater value should market conditions make it harder to generate returns. If there is a deficit in the future, members will still see their guaranteed pensions increase by RPI, and will continue to receive bonus pensions to ensure that their total pension does not fall in cash terms. If the investment reserve that the Government leave in the scheme to act as a buffer is exhausted, funds from the Government will be found to ensure that payments continue to be made to scheme members. To be absolutely clear, that commitment from the Government is unwavering.

Question put and agreed to.