Ministers In Budget Eve Row With Labour MPs Over Miner Pension Fund
Andy Burnham and John Healey meet ahead of the budget | (Alamy)
2 min read
There is fury among Labour MPs from mining seats on the eve of the Budget over government plans to renege on a promise to transfer what remains of a pension fund to former miners.
Labour MPs were informed on Tuesday that ministers no longer planned to transfer what remains of the Mineworkers' Pension Scheme to former mine workers as expected, PoliticsHome understands.
Instead, PoliticsHome understands that the Treasury is looking to renegotiate the existing 50/50 surplus-sharing arrangement.
The saga dates back to 1994 when British Coal was privatised and ministers agreed that the government would act as guarantor for its pension payouts.
Former chancellor Rachel Reeves ended the 30-year-old arrangement in her first Budget in 2024, transferring part of the fund (£1.5bn) to members.
However, Labour MPs in affected areas were expecting beneficiaries to receive the remaining funds, believed to be worth £1.2bn.
On Tuesday night, backbenchers were urging the government to change course, making urgent representations to No 10 ahead of Chancellor John Healey delivering the Andy Burnham administration's first Budget on Wednesday.
John Trickett, Labour MP for Normanton and Hemsworth, told PoliticsHome: “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 told PoliticsHome: “I hope John [Healey] makes the right decision; miners and their families are part of our core voters.”
Labour MPs urging ministers to reconsider have warned the government that current plans risked being seen as a "betrayal" that Reform UK would capitalise on between now and the next general election.
Prime Minister Burnham met with coal miners during his campaign to win the Makerfield by-election earlier this year.
At the time he told The Mirror: "I have stood with coalfield communities for more than 20 years, and as Makerfield's voice in Westminster, I will keep fighting to make sure every promise is honoured and every penny reaches the people it is meant for."
The Treasury declined to comment on speculation ahead of the Budget tomorrow.
