Mineworkers’ Pension Scheme: Government Response to the Committee’s Sixth Report of Session

Fourth Special Report

On 29 April 2021, the Business, Energy and Industrial Strategy Committee published its Sixth Report of Session 2019–21, Mineworkers’ Pension Scheme (HC 1346). The Government’s response was received via correspondence on 28 June 2021. The Government’s response is appended below. The Committee’s recommendations are in bold type, the Government response is in plain type.

Government Response

Letter from the Minister of State for Energy, Clean Growth and Climate Change, 28 June 2021

I am writing to respond to your Committee’s report into the Mineworkers’ Pension Scheme (MPS) published on 29 April 2021.

Thank you for conducting the enquiry and for the opportunity to respond to the report. The enquiry enabled issues surrounding the MPS to be aired and considered thoroughly. I am pleased to see that all parties recognise the reassurance that the guarantee has provided and the ability it has brought the Trustees to invest so as to maximise returns and generate bonus pensions for their members.

I met the Trustees on 21 June to discuss the Committee’s report and it was very useful to get their views on how we might move forward. I asked them whether they might feel able to proceed without the continued Government guarantee, which would enable all surpluses to be shared amongst scheme members. However, there are numerous examples of pension schemes that have been unable to meet their basic obligations, let alone increase pensions to the extent the MPS has under the current arrangements. The Government continues to believe that the arrangement agreed in 1994 was fair and beneficial to both Scheme members and taxpayers. Scheme members have rightly shared in the benefits but the Government has taken on all the risk.

In the meantime, I am unable to agree to the Committee’s recommendations. The Government response to the report is set out in the attached annex.

Published: 5 July 2021 Site information    Accessibility statement