‘It’s been a long time coming’ — Ex-mine worker welcomes Budget pension boost

A mine worker from Tredegar says the pension scheme boost for former mineworkers unveiled in Rachel Reeves’ Budget has “been a long time coming”, but the UK Government is giving with one hand and taking with the other.
It comes after the UK Government announced moves to overturn an “historic injustice” involving the pensions of former mine workers.
Ministers said more than 100,000 former mineworkers will receive £1.5billion of money kept from their pensions.
“We’ve been fighting for over 10 years for this money of miners’ pension,” retired miner Ken Sullivan told ITV Cymru Wales.
“It’s been a long time coming as it’s over the amount of money that the government has robbed from the miners.
“But it’s nice to have something come back to the miners from £1.2billion to £1.5billion out of the investment of the funds.”
Meanwhile, universal winter fuel allowance has been scrapped and will only be paid to those on pension credit.
Mr Sullivan added: “When you look at it in real terms, what they’ve given us in one hand, and they’ve robbed us of our winter allowance from the other hand.
“So, we’re not really gaining anything out of it at all. It’s another form of robbery by the government that has been done to the miners over the past 25 years.”
Following Wednesday’s Budget, UK energy secretary Ed Miliband confirmed the move will mean a 32% increase to the annual pensions of 112,000 former mineworkers, an average increase of £29 per week for each member.
An investment reserve fund set up using profits from the Mineworkers’ Pension Scheme in 1992, to provide a buffer in case it went into deficit, was due to be returned to government in 2029.
The fund, now worth £1.5billion, will be handed over to the pension scheme.
Mr Miliband said: “We owe the mining communities who powered this country a debt of gratitude.
“For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.
“Today, that scandal ends, and the money is rightfully transferred to the miners.
“I pay tribute to the campaigners who have fought for justice, today is their victory.”
Minister for industry Sarah Jones said: “Miners powered our industries and our homes for decades.
“That’s why we have to right the wrong that has denied them the decent pension they deserved.
“We are handing over the £1.5billion that for years has sat in the reserve fund unused at times when people needed it most.
“This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay, an increase of 32%.”
Gary Saunders, chairman of the trustees of the Mineworkers’ Pension Scheme, said: “As a trustee board we are delighted we will be able to put more money in our members’ pockets.
“We are also grateful to the many members and MPs who have shown support of the scheme on this matter over the years.”
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