"Members of the British Coal Staff Superannuation Scheme will see their pensions rise by 41% from Tuesday, following the transfer of the government's share of the scheme's surplus. The move brings long-awaited relief to tens of thousands of former workers who had campaigned for years against an arrangement that allowed the state to take half of any surplus while members bore all the risk."
"For many, the uplift marks a turning point after years of financial anxiety. Julie Creed, from Mansfield, who worked in British Coal's salaries office, said the extra income would make a "massive difference" as household bills continue to rise. She added that her mother-in-law, now in her 80s, would no longer have to worry about whether she could afford to heat her home following the death of her husband, who worked in the mines."
"Campaigners had previously warned that some pensioners were "dying in abject poverty" after billions were taken from the schemes over decades. Ministers announced an end to the arrangement in the autumn budget of 2024, describing it as a long-overdue correction of an injustice rooted in the industry's privatisation. Cheryl Agius, chair of trustees of the pension scheme, called the change a landmark moment. She said it marked "the result of a year of determination, advocacy and collaboration" and represented a clear break from the past."
The government transferred a £2.3bn reserve fund to the British Coal Staff Superannuation Scheme, increasing pensions by up to £100 weekly and backdated lump sums averaging £5,500. Members will see a 41% rise from Tuesday after the state's share of the scheme's surplus was handed over. The change affects about 40,000 former non-mining colliery staff, including over 5,000 women, and follows similar reforms to the Mineworkers' Pension Scheme. Many pensioners face reduced financial anxiety as households gain income. The autumn budget 2024 ended the surplus-sharing arrangement after campaigners warned of severe poverty among pensioners.
Read at Business Matters
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