The Mineworkers’ Pension Scheme should be reviewed urgently, MP John Healey has told the Chancellor.
The 1994 arrangement saw the UK Government agree to guarantee pensions in return for a 50% share of any surpluses. Since then, the Government has made around £4.1 billion from the scheme.
The Wentworth and Dearne MP said in a letter: “The Government guarantee has always been an essential feature of the settlement and should certainly continue.
“However, there is a strong case for revisiting the sharing arrangements.
“The Government has had to make no direct payments in 25 years, yet it has continued to take a 50% share of the surplus.”
He pointed out that the Labour Government set up a health compensation scheme which saw more than £120m go to 20,000 ex-miners and their families in Rotherham. In Barnsley, over £250m went to 40,000 claimants.
The MP added: “Mineworkers and their families felt during this period that they were at least getting something back from Government but since 2010 their sense of injustice has grown, especially as the scheme’s investment returns have been strong.
“It must be time for the Government to consider taking a reduced share of the surplus to allow more pension support for the mineworkers.”
Read the letter in full: