Almost 40,000 former coal industry workers are set to receive a significant increase of £100 per week in their pensions, starting today. This boost, equating to a 41% raise, follows ongoing efforts to release surplus funds from the British Coal Staff Superannuation Scheme (BCSSS) to its members.
This development was revealed after Chancellor Rachel Reeves announced during the Budget that the government had returned the £2.3 billion reserve, previously held since 1994, back to BCSSS members. The transfer of the investment reserve fund aims to ensure fair retirement benefits for those who dedicated their careers to the coal industry.
Those impacted will also receive a one-time lump sum of £5,500 today, retroactive to November 2024 when the Mineworkers’ Pension Scheme saw an increase. The BCSSS scheme encompasses not only former miners but also individuals who served in various non-mining capacities at coal mines nationwide, including engineers, managers, canteen staff, and administrators.
Of the approximately 40,000 BCSSS members, around 40% are women. This move follows the government’s prior transfer of £1.5 billion to participants of the Mineworkers’ Pension Scheme in the previous year.
Secretary of State for Energy and Net Zero, Ed Miliband, commended the efforts of mineworkers and campaigners in rectifying this long-standing issue. The pension rise, occurring just before Christmas, is seen as a well-deserved reward for retirees.
Cheryl Agius, Chair of Trustees of the British Coal Staff Superannuation Scheme, described this moment as historic, reflecting a year of steadfast advocacy and collaboration. The government’s decision to allocate the Scheme’s investment reserve to its members aligns BCSSS beneficiaries with their counterparts in the Mineworkers’ Pension Scheme.
Acknowledging the members’ instrumental role in advocating for this change, the Trustees expressed gratitude for their support over the past twelve months in raising this issue with the government.