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The UK Government is facing renewed calls to give ex-mineworkers their share of a £1.2bn pension pot.
MPs from both the Labour Party and Scottish National Party (SNP), along with independents, have signed a letter to the Prime Minister calling on the UK Government to make changes to the Mineworkers Pension Scheme.
History of the Mineworkers Pension Scheme
The scheme was first introduced in 1952.
Prior to April 1975, mineworkers made contributions to the scheme on a flat-rate basis, paying no more than 20p in each week.
However, after 1975, the contributions paid and the benefits received from the scheme became linked to the workers’ salaries. Where workers’ contributions weren’t enough to cover the benefits, British Coal stepped in to pay the rest.
British Coal was privatised in 1994, and the pension scheme closed for further contributions. The UK Government then became the guarantor for the scheme in place of British Coal.
The scheme had a surplus that year, half of which went towards topping up members’ pensions, while the other half was left as an investment reserve.
It is this investment reserve, worth £1.2bn, that the Business, Energy and Industrial Strategy (BEIS) Committee, as well as Labour MPs Wayne David, Chris Evans and Gerald Jones, want distributed among ex-mineworkers within the scheme.
The three Labour MPs representing seats in Caerphilly County Borough (Caerphilly’s Wayne David, Islwyn’s Chris Evans and Gerald Jones of Merthyr Tydfil and Rhymney) have all signed the letter, calling on the government to return the £1.2bn surplus to miners.
They have also demanded the government changes the surplus agreement so that miners’ receive more money.
In April, a parliamentary committee called on the government to review the scheme – and give ex-mineworkers their share of a £1.2bn reserve.
By splitting the £1.2bn between ex-miners, it would mean the average pensioner on £84 a week would receive an extra £14 a week.
A report, published by the Business, Energy and Industrial Strategy (BEIS) Committee at the time, said it was “unconscionable” that there are people on the scheme who are struggling to make ends meet.
The committee has said the government should review the surplus sharing arrangements in the scheme. This arrangement sees the government get half of any surplus from the scheme.
The arrangement was agreed in 1994 after the privatisation of British Coal, in return for a government guarantee that the value of the pensions would never be decreased.
Islwyn MP Mr Evans said: “Too many retired miners and their widows in Wales are living with the failure of the government to fix the issues with the Mineworkers Pension scheme.
“The Government can not be allowed to continue to raid miners’ pensions pots. Time is running out and immediate change is needed to give miners the pensions they deserve.”

Chris Kitchen, Secretary of the National Union of Mineworkers, said: “The theft of miners pensions has been a grave injustice.
“These are not the Government’s funds. These are miners’ pension contributions which have been taken from them.”
He added: “I am pleased that Labour has today committed to writing this historic wrong and giving a real immediate financial uplift to former miners and their families all across the country.”
The BEIS Committee report revealed the Government has received £4.4bn in cash payments from the scheme and is set to receive a further £1.9bn – bringing the total amount received to £6.3bn. The committee heard the government has never paid anything into the scheme and it is unlikely it ever will.
During the 2019 UK General Election, Prime Minister Boris Johnson promised ex-mineworkers that “all their cash is fully protected and returned”.
Mr Kitchen called on the UK Government to “step up” and “follow through on their promise to end this injustice”.
In April, a UK Government spokesperson said: “Mineworkers’ Pension Scheme members are receiving payments 33% higher than they would have been thanks to the government’s guarantee. On most occasions, the scheme has been in surplus and scheme members have received bonuses in addition to their guaranteed pension.
“We remain resolutely committed to protecting the pensions of mineworkers, are carefully reviewing the findings of this report, and will consider all recommendations made.”
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