Key Takeaways
- Former mineworkers will receive a £100-a-week boost to their pensions after a hard-fought battle
- The government has transferred over its £2.3bn reserve fund to the British Coal Staff Superannuation Scheme
- Members will receive a 41% uplift in their pension packets and an average lump sum of £5,500
- The move affects 40,000 people who had non-mining roles at collieries, including over 5,000 women
- The pensions of former mineworkers should now be more in line with those of other former public sector workers
Introduction to the Pension Boost
The British government has announced a significant boost to the pensions of former mineworkers, providing them with a much-needed increase in their retirement income. The move comes after a long and arduous battle, with many former mineworkers struggling to make ends meet due to the government’s previous raid on their pensions. The Guardian had reported that some former mineworkers were "dying in abject poverty" and were unable to "afford to bury themselves" due to the lack of funds. However, with the government’s recent announcement, former mineworkers and their families can now breathe a sigh of relief.
The Impact of the Pension Boost
The pension boost will have a significant impact on the lives of former mineworkers and their families. The £100-a-week increase will provide them with a much-needed injection of funds, allowing them to afford the basics and enjoy a more comfortable retirement. Julie Creed, a former employee of British Coal, said that the money would "really help" when bills were going up. She also added that it would benefit her mother-in-law, who is in her 80s and whose husband was a mineworker. The increased pension will allow her mother-in-law to heat her home and afford other essentials without worrying about the cost.
Reaction from Campaigners and Politicians
The news of the pension boost has been welcomed by campaigners and politicians who have been fighting for justice for former mineworkers. Cheryl Agius, the chair of trustees of the pension scheme, said that it was a "historic moment" and a "turning point" for former mineworkers. Steve Yemm, the Labour MP for Mansfield, who has campaigned on the issue, said that the move would finally provide justice for former mineworkers. However, he also added that it was not the end of the battle, as there were still concerns about future surplus-sharing arrangements. The energy secretary, Ed Miliband, paid tribute to "all the mineworkers and all the campaigners involved in ending this decades-long injustice".
The Future of the Pension Scheme
While the pension boost is a significant step forward, there are still concerns about the future of the pension scheme. Steve Yemm has written to ministers to express his concerns about the lack of clarity on future surplus-sharing arrangements. He has also pledged to work with the respective scheme trustees to ensure that a fair surplus-sharing arrangement is reached. The energy secretary, Ed Miliband, has also acknowledged the need for further action, saying that the government would continue to work with former mineworkers and their families to ensure that they receive the retirement they deserve.
Conclusion
The pension boost for former mineworkers is a significant victory for those who have been fighting for justice. The £100-a-week increase will provide former mineworkers with a much-needed injection of funds, allowing them to enjoy a more comfortable retirement. While there are still concerns about the future of the pension scheme, the move is a major step forward in recognizing the contributions of former mineworkers to the British economy. As the energy secretary, Ed Miliband, said, "Today, thousands will rightly see a 41% uplift in their pension payment just before Christmas – providing them with the retirement they deserve."
