Mineworkers’ Pension Scheme

Debate between Nick Smith and Ben Bradley

Tuesday 5th December 2017 Westminster Hall

[Nick Smith]

My hon. Friend and neighbour, like my hon. Friend the Member for Islwyn (Chris Evans), gets right to the bone. Nearly £2.7 billion has come from the scheme to the Government as their share of the subsequent surpluses. That means that the Government have taken the same share as the people who earned the pensions in the first place.

Instead of paying in, the Government act as a guarantor in case things go wrong. That is a good thing and has been helpful—the trustees say that. The Government say that they take the money because they will step in and protect the value of pensions if the fund encounters difficulties. The trustees accept that this protection has enabled them to pursue more lucrative investments than might otherwise have been the case. I would like to be clear: we are glad that the Government guarantee is there. It has made a difference and helped to lead to better returns.

[Ben Bradley (Mansfield) (Con)]

I have also met the trustees. Does the hon. Gentleman accept what they have said—that the guarantee is the most important part of the agreement, and that they would not wish to give any movement on that guarantee within the scheme for any price?

[Nick Smith]

The hon. Gentleman is right. When we met the trustees, they told us that the guarantee was important, and I accept that. It has been helpful in terms of pursuing lucrative investments, which have aided scheme improvements and its funding. It has also given miners the peace of mind that the pension they earned will not go down in value, no matter what happens in the markets. It is a good thing. The basic nature of the guarantee is not in dispute. The concern is about how much money is being taken out of the surplus in return for it. That is the question we have to try to tease out.