From today, former mineworkers and staff covered by the British Coal Staff Superannuation Scheme (BCSSS) are receiving significant pension bonuses, with individual payments averaging £5,500. This one-off lump sum follows a government announcement by Chancellor Rachel Reeves during the recent Budget, confirming the distribution of a £2.3 billion investment reserve that has been held since 1994.
The BCSSS pension scheme serves a wide range of former colliery workers, including miners, engineers, managers, canteen staff, and administrative personnel across the UK. The payments are backdated to November 2024, coinciding with the increase in the Mineworkers' Pension Scheme, delivering a welcome boost to thousands just ahead of the holiday season.
Energy and Net Zero Secretary Ed Miliband praised the milestone, stating, “I want to pay tribute to all the mineworkers and campaigners who have fought to end this decades-long injustice. Today, thousands will see a 41% uplift in their pension payments – a well-deserved recognition of their contributions.”
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Cheryl Agius, chair of the BCSSS trustees, highlighted the significance of this moment: “After a year of determination and collaboration, this historic payout marks a turning point, bringing BCSSS members in line with their counterparts in the Mineworkers' Pension Scheme, who received a similar investment reserve distribution last year.”
The government plans to meet with BCSSS trustees in the New Year to discuss surplus-sharing arrangements moving forward.
The origins of this reserve date back to British Coal’s privatisation in 1994. At that time, the Government guaranteed the payment of pensions and inflation increases, in return for entitlement to half of any investment surpluses. While successive governments have already withdrawn around £3.2 billion, the remaining funds have been held as a financial buffer. In 2015, surplus-sharing was abolished amid a series of scheme deficits, with all further profits allocated to the reserve fund, which the Government can fully access by 2033.
Critics warn that the recent payout may risk taxpayer funds, potentially leaving the public liable if the scheme encounters future deficits. However, campaigners argue the reserves were rightfully accrued by scheme members and should be returned to them.
Currently, the BCSSS supports around 40,000 pensioners and deferred members, ranking it among the largest occupational pension schemes in the UK.