Former Miners To Receive Pension Fund Within Weeks, Says Chancellor
The Chancellor John Healey walks out 11 Downing Street on Budget Day. | (Alamy)
4 min read
John Healey has pledged that former miners will receive their remaining pension funds following a Labour MP backlash on the eve of last week's Budget.
On Tuesday, the Chancellor told MPs that ex-miners would receive “every penny” of the pension fund and said work is happening to ensure that happens “in weeks, not months”.
“Every penny of the pension fund surplus will go to miners," he told the House of Commons.
"I know the job’s not done. I will go on to ensure the full transfer of the guarantors fund. I want a way to resolve this in weeks, not months.
"That work is underway. That work will be done jointly by DESNZ (Department for
Energy Security & Net Zero) and the Treasury,” the Chancellor said.
In his Budget speech last Wednesday, Healey pledged the “full transfer of the Guarantor’s Fund”, believed to be worth £1.2bn, and promised to end the “standstill arrangement”, ensuring the pensions continue to rise for former miners.
The night before, a group of Labour MPs representing former mining seats expressed fury after being told that the government planned to renege on its pledge to transfer what remains of the Mineworkers' Pension Scheme (MPS).
As reported by PoliticsHome last week, the MPs made urgent representations to No 10, the Treasury and the whips in an attempt to persuade the government to rethink.
Normanton and Hemsworth MP John Trickett told PoliticsHome on the night: “We owe a moral duty to the miners and the government must show that it has listened, understands and will act in this matter. Nothing less will do.”
Another Labour MP, Kate Osbourne, told PoliticsHome: “I will continue to push for us to deliver in full on our promise to end this injustice and ensure former miners and their widows receive the pensions they deserve.”
Former chancellor Rachel Reeves ended a 30-year-old arrangement in her first Budget in 2024 by transferring the first part of the fund (£1.5bn) to former miners.
On Tuesday, sources close to Reeves told PoliticsHome the issue was very important to her and that, as chancellor, she met with many people directly impacted by it.
The latest statement from Healey on Tuesday was in response to Scottish Labour MP Imogen Walker, who asked for an updated timeline for the return of the pension fund.
“There is more to do and time is pressing,” she said, adding: “They deserve every penny of their pensions”.
PoliticsHome understands the Chancellor informed MPs at a meeting of the Parliamentary Labour Party on Monday night that he is working with trustees of the MPS to ensure ex-miners receive what is owed within a matter of weeks.
Last week, the Coalfield Group of Labour MPs wrote to Healey demanding the immediate release of the £1.2bn fund.
Signed by MPs including Luke Akehurst, Rachel Taylor and group chair Grahame Morris, the letter urges Healey and Prime Minister Andy Burnham to “prove to miners and their families that this Labour government is on their side”.
“Since 1994, the government has taken more than £4.4bn from the MPS in return for a guarantee that has never cost the public purse a penny,” the MPs write.
“We understand the fiscal pressure of the Treasury, however, in light of the facts, we cannot see a justification for withholding the money that belongs to scheme members alone.”
On Monday, Reform UK urged the government to pay the remaining pension fund before Christmas and promised that ex-miners would be paid what is owed within the first 100 days of a Nigel Farage-led government.
“Enough is enough. Miners and their families have waited too long. Tragically, 18 ex-miners die every day without the fair resolution of this matter they deserve,” Robert Jenrick and Lee Anderson said in a joint statement.
