Pension victory for former Dearne Valley miners - but £1.2bn wait goes on
It comes after a 27-year campaign from the NUM, calling for a review
Former miners in the Dearne Valley have won a pension breakthrough from their own MP, but John Healey faces demands to release £1.2bn still locked away.
The Rawmarsh and Conisbrough MP used his first Budget as Chancellor yesterday (October 28) to end the government’s claim on half of future Mineworkers’ Pension Scheme surpluses.
The National Union of Mineworkers (NUM) welcomed the reform after campaigning for a review for 27 years, but warned that some pensioners would not live to benefit unless existing funds were released.
Under the change, all future surpluses will remain in the schemes and can be used to increase pensions.
But the NUM expressed disappointment that Healey had not also found a way to release the existing guarantors’ fund to boost members’ incomes.
“The money in the MPS guarantors fund is not taxpayers’ money, it is the remaining ill-gotten gains from an unfair system put in place that has penalised members of the MPS for the last 31 years,” the union said.
For decades, the government has received a share of pension surpluses in return for guaranteeing members’ pensions.
The NUM says the arrangement has transferred more than £4.4bn from the Mineworkers’ Pension Scheme alone to the government, despite the guarantee never being called upon.
The reform means future surpluses can benefit pensioners in full, but leaves unresolved the question of when money already held back will reach them.
Healey acknowledged there was more to do and committed to continuing work towards the fund’s full transfer.
The union recognised the difficult financial position and competing priorities facing the Chancellor, while stressing the urgency for members.
The union’s response combines support for the Budget breakthrough with a warning that further delays will come at a human cost.
“We know that the Chancellor recognises this and we have confidence that he will continue to look to release the guarantors fund at the earliest opportunity, and that time is not on the side of MPS pensioners,” it said.
“Many of them will not see any benefit and the longer this injustice is allowed to continue that number will only increase.”