Mineworkers’ Pension Scheme
Debate between Nick Smith and Wayne David(6 years, 11 months ago)
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Wayne David (Caerphilly) (Lab)
As my hon. Friend has said, the surplus gets to the heart of the issue. Does he accept that the surplus the Government have received is far in excess of their own expectations for what could have happened?
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.