Mineworkers’ Pension Scheme Contents

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1Introduction

1.The Mineworkers’ Pension Scheme is the larger of two main pension schemes established for British Coal’s workforce. In 1994 the Scheme was closed to further contributions and privatised. As part of the future arrangements agreed at that point, the Government became guarantor to the Scheme, and guaranteed that pension members would always receive the benefits they had earned up to privatisation, and that these benefits would increase in line with inflation.1 In return, it was agreed that the Government would be entitled to a 50% share of any surpluses in the Scheme’s value at future valuations. The other 50% would be distributed to members through bonuses.2 Since 1994, the Scheme has performed strongly, which has meant the Government has received more money from the arrangements than was initially expected. The surplus sharing arrangements have therefore become the focal point of various campaigns to review the Scheme’s rules.3

Our inquiry

2.On 23 December 2020, Stephanie Peacock MP wrote to the Chair of the Committee requesting that a formal inquiry into the Mineworkers’ Pension Scheme be launched.4 The letter was signed by 50 MPs representing former coalfield communities. We raised the issue with Rt Hon Kwasi Kwarteng MP, the Secretary of State for Business, Energy and Industrial Strategy in January 2021, and launched a short inquiry on 18 March 2021.5

3.On 23 March 2021, we took evidence from the Scheme’s Trustees and the General Secretary of the National Union of Mineworkers.6 On 13 April 2021 we questioned Rt Hon Anne-Marie Trevelyan MP, the responsible Minister in the Department for Business, Energy and Industry Strategy.7 We have received over 100 written submissions, emails and letters. The Chair was also pleased to attend an informal public meeting with members of the Scheme.

4.We would like to thank all individuals who have contacted us with their concerns, and those who have provided oral and written evidence. We are grateful to the Members of Parliament from all parties who have supported our inquiry, or who provided us with evidence.