Mineworkers handed £1.5 billion pension scheme early Christmas present in Budget

During her Budget statement today (Wednesday), new Labour Chancellor Rachel Reeves, announced the scrapping of the controversial former arrangement, which saw the Government receive hundreds of millions of pounds from mineworkers pension schemes was being scrapped.

Ms Reeves said: “It is right that we protect those who have worked all their lives.

"In our manifesto, we promised to transfer the investment reserve fund in the mineworkers pension scheme to members.

"Today we are keeping our promise so that working people who powered our country receive the fair pension that they are owed.”

This will now free up the £1.5 billion investment reserve fund to give to mineworkers and widows, who will all see a massive 32 per cent increase in their pensions.

It means victory for mining campaigners across the country who for years have claimed former miners and their families have been robbed of billions by successive Governments and called for a fair share of the pension pot.

Mick Newton, a former miner from north Nottinghamshire, who has been one of the leading campaigner for the mineworkers, said: “May I take this opportunity to thank all that have continued to fight for these improvements over the past 30 years, most notably over the last 10 years.

"Please remember the sacrifices these campaigners have made to their lives and families to achieve this victory.

"I personally want to applaud everyone that signed our petition and emailed MPs.”

When mineworkers and their families signed up to the pension scheme in 1994, many said they were told by ministers that ‘no more than £2 billion’ was needed from the pot to guarantee its future.

In 1994, a privatisation agreement was signed, meaning the Government would receive half of any surplus cash from a miners' pension scheme in return for guaranteeing that pensions would increase.

The previous Conservative Government confirmed that it had received £4.8 billion from the scheme over the last 30 years.

However, campaigners believe the figure is closer to £8 billion and said they believe if current trends had continued, the Government could have taken another £1 billion over the next decade.