Those eligible will also receive a £5,500 lump sum backdated to November.
Huge pension change as some UK pensioners to get extra £100 a week (Image: Getty)
Former mineworkers are now receiving an additional £100 on average to their weekly pension payments from today. The move comes after Rachel Reeves announced at the Budget that the £2.3billion reserve, which had been retained by the Government since 1994, would be handed over to members of the British Coal Staff Superannuation Scheme (BCSSS).
Ministers said that with payments backdated to November 2024, when the increase to the Mineworkers’ Pension Scheme took effect, members should today collect a one-off lump sum averaging £5,500. The BCSSS scheme covers former coal miners alongside those who held non-mining positions at collieries throughout the UK – encompassing engineers, managers, canteen staff and administrators.
The Chancellor announced the move at the Autumn Budget (Image: Getty)
Energy and Net Zero Secretary Ed Miliband said: “I want to pay tribute to all the mineworkers and all the campaigners involved in ending this decades-long injustice. Today, thousands will rightly see a 41% uplift in their pension payment just before Christmas – providing them with the retirement they deserve.”
Cheryl Agius, chair of trustees of the British Coal Staff Superannuation Scheme, said: “This is a historic moment – the result of a year of determination, advocacy and collaboration – and it marks a turning point for the scheme.
“The Government has listened to the trustees, scheme members, and coalfield MPs that have supported this issue, and agreed to transfer the scheme’s investment reserve to members.
“Being able to make the first bonus pension increase today brings BCSSS members into line with their former colleagues in the Mineworkers’ Pension Scheme (MPS), who received their investment reserve in November last year.”
The Government will meet with Trustees of the BCSSS in the new year to agree on a way forward with surplus sharing arrangements.
Campaigners argue that the reserves were built up by scheme members and should rightfully be returned to them.
Critics counter that the cash belongs to taxpayers, pointing out that the current surplus‑sharing rules were part of the Government’s guarantee that pensions would always be paid, even if funds ran dry.
That deal was struck after British Coal’s privatisation in 1994, when the British Coal Staff Superannuation Scheme was granted a Government guarantee covering all pension payments, including inflationary increases. In return, the Government was entitled to 50% of any investment surpluses, with the other half going to members.
So far, successive Governments have withdrawn around £3.2 billion. The remainder of the Government’s share sits in the scheme’s investment reserve fund, which acts as a buffer if pension payments fall short.
After the scheme entered a series of deficits, the surplus-sharing arrangement was scrapped in 2015. Since then, all profits have gone into the reserve, which the Government can fully draw down from 2033.
It has been argued that the decision to hand over the money strips away billions owed to taxpayers in 2033 and risks leaving the public on the hook if the scheme falls into deficit.
The British Coal Staff Superannuation Scheme (BCSSS) is one of the largest occupational pension schemes in the UK, providing benefits for 40,000 pensioners and deferred members.
