Mineworkers’ Pension Scheme

William Cash Excerpts

Thursday 14th February 2019 Commons Chamber

[Stephanie Peacock]

I thank my right hon. Friend for that intervention. I know he has championed this issue over many years. I have indeed spoken to the trustees, and they are in agreement that we need to look at this again.

[Sir William Cash (Stone) (Con)]

I would simply like to say, first, that I hope the hon. Lady gets a review out of this debate, at the very least; and secondly, that I have always supported the mineworkers, since the closing of the pits by Michael Heseltine. It was a long time ago, but the bottom line is that the miners deserve to be looked after properly.

[Stephanie Peacock]

I thank the hon. Gentleman for that contribution. I am pleased that we have cross-party support today. It is very welcome.

The risk undertaken by the Government in guaranteeing the pensions no longer justifies the price paid by the miners for that assurance. The membership of the scheme alone has decreased substantially over the decades since the deal was struck. In 2006, there were 280,000 members; now, there are 160,000. The Government’s financial risk in their role as guarantor of the pensions is in permanent decline, yet in essence they are still charging miners the same price that they charged 25 years ago.

--- Later in debate ---

[Claire Perry]

I am afraid that there is a fundamental fallacy in some of the arguments that have been advanced. I suspect that the Labour Government made the decision not to review the surplus sharing for the same reason, which is that the money that comes to the Government is then being spent to support pensioners in many ways, providing them with, for instance, free prescriptions and bus passes. It is not correct to say that the money is just sitting there.

[Sir William Cash]

rose—

[Claire Perry]

No, I will not give way. Some important questions have been answered. I think that I was generous in allowing two speeches to be made before my response.

As the hon. Member for Barnsley East rightly said, the scheme continues to function and the numbers are falling. The only scheme that resembles this one is the one that was set up for rail workers. Again, the Government are the guarantor, which means that any liabilities incurred by the scheme will come back to them. For that reason, the trustees, who include ex-miners, have done an amazing investment job. Because of that guarantee—it is basically a Government-backed scheme—the returns are at least a third higher than they would otherwise have been, so it has generated a lot of value.