Almost 40,000 former mineworkers are set to receive a significant increase of £100 per week in their pensions starting today. This boost represents a 41% raise and follows extensive efforts to release surplus funds from the British Coal Staff Superannuation Scheme (BCSSS) to its members.
The decision was made after Chancellor Rachel Reeves announced during the Budget that the government had returned the £2.3 billion reserve, which had been held by the government since 1994, back to BCSSS members. In her Budget speech, Reeves stated, “I will transfer the investment reserve fund of the BCSSS to its members so that the men and women who worked in our coal industry get a fair deal in their retirement too.”
In addition to the weekly increase, those impacted will also receive a lump sum payment of £5,500 today, with retroactive effect to November 2024 when the Mineworkers’ Pension Scheme saw its raise.
The BCSSS scheme encompasses former coal miners and individuals in non-mining roles at collieries nationwide, including engineers, managers, canteen workers, and administrators. Approximately 40% of the around 40,000 BCSSS members are women. This move comes following the government’s allocation of £1.5 billion to members of the Mineworkers’ Pension Scheme last year.
Secretary of State for Energy and Net Zero, Ed Miliband, expressed appreciation for the efforts of mineworkers and advocates in rectifying this long-standing issue. He remarked, “Today, thousands will rightfully experience a 41% boost in their pension payments just before Christmas – ensuring they receive the retirement they deserve.”
Cheryl Agius, Chair of Trustees of the British Coal Staff Superannuation Scheme, described this moment as historic and the outcome of unwavering determination, advocacy, and cooperation. She emphasized that the government’s decision to transfer the Scheme’s investment reserve to members aligns BCSSS members with their counterparts in the Mineworkers’ Pension Scheme.
Acknowledging the support of BCSSS members in raising the matter with the government, the Trustees conveyed their gratitude for the backing received over the past year.