Pensions boost for former miners who will see payments rise by 32 per cent

It means the average claimant will see an extra £29 a week, following Chancellor Rachel Reeves’ decision to hand over £1.5bn.

The rise equates to a 32 per cent increase.

Former workers had long argued that the profit should have been paid to them, as contributors to the scheme.

Barnsley South MP Stephanie Peacock was among those to support the campaign, frequently raising the issue in Parliament.

She met with with the minister responsible for the scheme, Sarah Jones, shortly after the party took power in the General Election this summer.

Rother Valley MP Jake Richards has also welcomed the decision to end the “historic injustice” of the scheme.

The decision to end the scheme was a key manifesto pledge for Labour during the election.

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, but will now go to fund pension payments to former mineworkers and dependents from this month.

Mr Richards said: “It is a historic injustice that former miners across Rother Valley, from Maltby to Dinnington to Thurcroft to Orgreave, have had to fight for so long for the pension settlement they deserve.

“I am proud that Labour ends this injustice and delivers what is rightfully owed back to mining families.”

In his constituency, 1,617 former mineworkers will receive the uplift, with 2,264 in the Rawmarsh and Conisbrough constituency, represented by John Healey MP, benefitting.

“This is a victory for the relentless campaigning of the trustees, members, and coalfield communities here in Rother Valley,” said Mr Richards.

Trustees are responsible for deciding how the £1.5 billion fund will distributed amongst their 112,000 members but it is understood payments will be made in November.

The National Union of Mineworkers was among those supporting the campaign for change and, when Labour made it a manifesto pledge ahead of the election, praised the move.