Monday November 11th 2024
Midlothian
Written by Midlothian View Reporter, Luke Jackson
UK Labour Government ends the injustice of the Mineworkers’ Pension Scheme, boosting the pensions of 952 former mineworkers in Midlothian
The Labour Government has reversed the historic injustice of the Mineworkers’ Pension Scheme, with the Secretary of State for Energy Security and Net Zero, Ed Miliband, confirming that mineworkers and their families will finally have the Investment Reserve from their pension scheme transferred to them.
This move will mean a 32 percent boost to the annual pensions of 112,000 former mineworkers across the UK, including 952 former mineworkers in Midlothian who will receive an immediate uplift in their weekly pension.
The announcement was welcomed by Kirsty McNeill, Labour and Co-operative MP for Midlothian and Parliamentary Under Secretary of State for Scotland, who said:
“It is a national scandal that people in Midlothian who helped power our country have had to fight for so long for the pension settlement they deserve.
“The UK Labour Government has ended this injustice and delivered what is rightfully owed back to Scottish miners and their widows. This is a victory for the extraordinary work carried out by folk here in Midlothian to champion this important cause, and the direct result of a UK Labour government in the service of working people, with Scottish MPs at its heart.”
The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit. This money was due to be returned to government in 2029.
Former mineworkers and their families have fought for justice for many years. In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.
Sir David Hamilton, ex-mineworker and former Labour MP for Midlothian, said:
“I welcome the Government standing by their manifesto commitment and transferring the £1.5 billion across to mineworkers and their widows. This in real terms means a 32% increase to their weekly pensions, which will be paid out from November 29th. I’m sure this will be warmly received by the many in Midlothian and across Scotland who have been unfairly dealt with over the years.”
When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.
The scheme has continued to produce strong returns and the government has never paid any funds into it. Therefore, the government is also delivering on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months.
Scottish Labour Leader Anas Sarwar said: “We owe the mining communities who powered Scotland a debt of gratitude. For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.
Now that scandal ends, and the money is rightfully transferred to the miners.”
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