Some former mineworkers who are receiving an extra one hundred pounds each week for their pensions after a difficult fight say they will no longer need to worry about money.
The Guardian reported that people were dying in extreme poverty and could not afford their own burial costs after the government took billions from their pension funds.
The government announced an end to this unfair situation in the autumn budget of 2024. Former miners and their families can now receive a fairer portion of the British Coal Staff Superannuation Scheme.
Pension Boost for Members Members will see their pension payments increase by 41 percent starting Tuesday. This boost comes after the government transferred its reserve fund worth £2.3 billion. The transfer represents a significant financial injection into the pension system. Members who have been receiving regular pension payments will notice the increase in their next payment cycle. The government’s decision to move the reserve fund aims to provide immediate relief to pensioners.
The government will pay members an average lump sum of £5500. This payment goes back to the date when officials agreed to stop an unfair arrangement. That arrangement had let the government take half of the scheme’s extra money.
The change primarily impacts 40,000 people who worked in non-mining positions at coal mines. More than 5000 of these workers were women. The government made similar adjustments last year to the Mineworkers’ Pension Scheme, which is the primary fund serving 100,000 members.
Their pensions should now match more closely with those of other former public sector workers.
Julie Creed from Mansfield used to work in the salaries office of British Coal. She said the money would really help her when bills were going up.
She explained that the change would help her elderly mother-in-law who is in her eighties. Her mother-in-law’s husband worked as a mineworker before he passed away. The adjustment has significantly improved her financial situation and increased her pension income. This means she no longer has to stress about whether she can afford basic expenses like heating her home. The extra money has provided real relief for her daily living costs.
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Cheryl Agius serves as chair of trustees for the pension scheme. She described the development as a historic moment that represents the outcome of a full year spent working with determination and advocacy while collaborating with others. She emphasized that this achievement marks a significant turning point.
Steve Yemm is the Labour MP for Mansfield & has been fighting for this cause. His constituency has more former mineworkers than any other area in the UK. He said this decision would finally bring justice to these workers but added that the fight is not completely over yet. Yemm has been vocal about the need for change and has worked hard to represent the interests of retired miners in his area. The announcement marks an important step forward for these communities that have waited a long time for recognition. However he believes there is still more work to be done to fully address the concerns of former mining families.
He added that he knows members of each scheme have not received the same clear information or answers about how future surpluses will be shared in the ongoing schemes.
They naturally want a fair agreement on sharing the surplus to be reached quickly and I fully support them in this. I am working with the relevant scheme trustees and have written to ministers about this matter.
The energy secretary Ed Miliband praised all the mineworkers and campaigners who worked to end this injustice that lasted for decades.
He added that thousands of people will rightly receive a 41% increase in their pension payment just before Christmas. This will provide them with the retirement they deserve.
