Mineworkers' Pension Scheme

Business and Trade Committee Closed Inquiry
Opened: 18 Mar 2021 Closed: 27 Sep 2021 Parliament page
The BEIS Committee is holding a short inquiry into the Mineworkers' Pension Scheme, and in particular the Scheme’s surplus sharing arrangements. When British Coal was privatised in 1994, an agreement was made between the Government and the Trustees of the Mineworkers Pension Scheme (MPS) on future arrangements for pensions. The … Read more
6 Recommendations
12 Conclusions
1 Report
2 Oral sessions
13 Letters
2 Events
Activity timeline 19 events
8 Jul
2021
Correspondence
5 Jul
2021
Report published
26 May
2021
Correspondence
13 May
2021
Correspondence
29 Apr
2021
Report published
29 Apr
2021
Correspondence
29 Apr
2021
Correspondence
27 Apr
2021
Correspondence
27 Apr
2021
Correspondence
27 Apr
2021
Correspondence
15 Apr
2021
Correspondence
15 Apr
2021
Correspondence
Oral evidence sessions 2 sessions
13 Apr 2021
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Oral evidence session
Rt Hon Anne-Marie Trevelyan · Department for Business, Energy and Industrial Strategy Rt Hon Kwasi Kwarteng · Department for Business, Energy and Industrial Strategy Sarah Munby · Department for Business, Energy and Industrial Strategy
23 Mar 2021
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Mineworkers' Pension Scheme
Allen Young · Mineworkers’ Pension Scheme Chris Cheetham · Mineworkers’ Pension Scheme Chris Kitchen · National Union of Mineworkers Dan Whincup · Coal Pension Trustees Ltd
Title HC No. Published Items Response
Sixth Report - Mineworkers’ Pension Scheme HC 1346 29 Apr 2021 18 Responded
Recommendations & Conclusions
18 results
1 Conclusion
Sixth Report - Mineworkers’ Pensio…
The Scheme’s Trustees had little choice but to accept the Government’s proposal to divide future...
The Scheme’s Trustees had little choice but to accept the Government’s proposal to divide future surpluses on a 50:50 basis, as a condition of securing the Government’s guarantee during the negotiations in 1994.
Government Response
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer … Read more
Department for Business and Trade
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2 Conclusion
Sixth Report - Mineworkers’ Pensio…
The Government failed to conduct due diligence during the 1994 negotiations and undertook no empirical...
The Government failed to conduct due diligence during the 1994 negotiations and undertook no empirical analysis or evaluation to inform or support the 50:50 split it proposed. The Government was negligent not to take actuarial advice.
Government Response
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer … Read more
Department for Business and Trade
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3 Conclusion
Sixth Report - Mineworkers’ Pensio…
The 50:50 split was, and remains, arbitrary.
The 50:50 split was, and remains, arbitrary.
Government Response
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer … Read more
Department for Business and Trade
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4 Conclusion
Sixth Report - Mineworkers’ Pensio…
To date, the Government has received £4.4bn from the Mineworkers’ Pension Scheme.
To date, the Government has received £4.4bn from the Mineworkers’ Pension Scheme. This is already more than the 1994 expectations of what the Government would receive. The Government is also due to receive at least another £1.9bn, on top of … Read more
Government Response
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer … Read more
Department for Business and Trade
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5 Conclusion
Sixth Report - Mineworkers’ Pensio…
The Government has not paid any funds into the Scheme since the surplus sharing arrangement...
The Government has not paid any funds into the Scheme since the surplus sharing arrangement was put in place in 1994. (Paragraph 23) Fairness of the current terms
Government Response
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer … Read more
Department for Business and Trade
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6 Conclusion
Sixth Report - Mineworkers’ Pensio…
Many former mineworkers have chronic health issues directly related to their former occupation, and the...
Many former mineworkers have chronic health issues directly related to their former occupation, and the former coalfields are amongst the most deprived areas of the UK. Sadly, their numbers are also decreasing year by year. Over half of Scheme members … Read more
Government Response
6. The Government does not accept that the Trustees had no choice about the Government proposal in 1994. We note that if the Trustees did not think the 50:50 offer … Read more
Department for Business and Trade
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7 Conclusion
Sixth Report - Mineworkers’ Pensio…
We recognise that the Government’s guarantee is important, has contributed to the success of the...
We recognise that the Government’s guarantee is important, has contributed to the success of the Scheme, and has benefitted Scheme members. However, we are not convinced by the Government’s argument that its entitlement to 50% of surpluses is proportionate to … Read more
Government Response
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 … Read more
Department for Business and Trade
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8 Conclusion
Sixth Report - Mineworkers’ Pensio…
Given that the Scheme has continued to produce strong returns despite the 2008 Financial Crisis...
Given that the Scheme has continued to produce strong returns despite the 2008 Financial Crisis and the COVID-19 pandemic, there is little reason to believe the Government will be required to pay into the Scheme before it is wound-up. Even … Read more
Government Response
Mineworkers’ Pension Scheme: Government Response 3
Department for Business and Trade
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9 Conclusion
Sixth Report - Mineworkers’ Pensio…
Whether or not the Government knew in 1994 that it would disproportionately benefit from the...
Whether or not the Government knew in 1994 that it would disproportionately benefit from the arrangement, and whether all parties thought it was fair at the time, 24 Mineworkers’ Pension Scheme is irrelevant. It is patently clear today that the … Read more
Government Response
13. The Government recognises the harsh conditions in which coal miners worked and the health issues those conditions caused. At privatisation, the Government took on British Coal’s liabilities and has … Read more
Department for Business and Trade
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10 Conclusion
Sixth Report - Mineworkers’ Pensio…
Governments should not be in the business of profiting from mineworkers’ pensions.
Governments should not be in the business of profiting from mineworkers’ pensions. We are therefore disappointed by the Government’s argument that the 1994 agreement is a success because the public purse has had strong returns from it. The Government is … Read more
Government Response
13. The Government recognises the harsh conditions in which coal miners worked and the health issues those conditions caused. At privatisation, the Government took on British Coal’s liabilities and has … Read more
Department for Business and Trade
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11 Recommendation
Sixth Report - Mineworkers’ Pensio…
The Government is disingenuous in claiming the Trustees are content with the terms of the...
The Government is disingenuous in claiming the Trustees are content with the terms of the current arrangements. The Trustees have been clear that they are not - and never were - happy with the terms, and that they would welcome … Read more
Department for Business and Trade
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12 Recommendation
Sixth Report - Mineworkers’ Pensio…
We are disappointed by the Government’s dismissive approach to proposals to review the existing arrangement.
We are disappointed by the Government’s dismissive approach to proposals to review the existing arrangement. The Minister’s claim of openness is contrary to the approach successive governments have taken since 1994. The Government must approach any future discussions with the … Read more
Department for Business and Trade
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13 Recommendation
Sixth Report - Mineworkers’ Pensio…
With the benefit of hindsight, it is clear that the Government has already profited greatly...
With the benefit of hindsight, it is clear that the Government has already profited greatly from the Scheme. The Government must acknowledge that continuation of the arrangements in their current form deserves a review and a better outcome for pensions … Read more
Department for Business and Trade
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14 Recommendation
Sixth Report - Mineworkers’ Pensio…
Whilst we have called for the 50:50 split to be replaced with a more appropriate...
Whilst we have called for the 50:50 split to be replaced with a more appropriate arrangement moving forward, we believe pensioners should also receive a more immediate uplift. We recommend that the Government hands the £1.2bn it is due to … Read more
Department for Business and Trade
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15 Conclusion
Sixth Report - Mineworkers’ Pensio…
The Government’s guarantee has undoubtedly benefitted the Scheme’s members by providing vital security that the...
The Government’s guarantee has undoubtedly benefitted the Scheme’s members by providing vital security that the value of pensions will not decrease. However, the price of this guarantee is no longer fair. (Paragraph 64) Mineworkers’ Pension Scheme 25
Government Response
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 … Read more
Department for Business and Trade
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16 Conclusion
Sixth Report - Mineworkers’ Pensio…
The beneficiaries of the Mineworkers’ Pension Scheme toiled in dreadful conditions, to keep the country’s...
The beneficiaries of the Mineworkers’ Pension Scheme toiled in dreadful conditions, to keep the country’s lights on. Many now live with industrial diseases caused by the dangerous nature of their former occupation. The least they should expect in return is … Read more
Government Response
The Government recognises the harsh conditions in which coal miners worked and the health issues those conditions caused. At privatisation, the Government took on British Coal’s liabilities and has since … Read more
Department for Business and Trade
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17 Recommendation
Sixth Report - Mineworkers’ Pensio…
The Government must now accept its moral obligation to the Scheme members, and acknowledge that...
The Government must now accept its moral obligation to the Scheme members, and acknowledge that continuation of the surplus sharing arrangements in their current form robs beneficiaries of the financial security they have rightfully earned.
Department for Business and Trade
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18 Recommendation
Sixth Report - Mineworkers’ Pensio…
Our recommendations set out equitable arrangements which would go some way to redressing the sense...
Our recommendations set out equitable arrangements which would go some way to redressing the sense of historic injustice felt by the Scheme’s members. The Government must consider them carefully. (Paragraph 67) 26 Mineworkers’ Pension Scheme
Department for Business and Trade
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Correspondence 13 letters
8 Jul 2021 To committee Letter from a member of the public relating to the British Coal Superannuation Scheme
Parliament page
26 May 2021 To committee Letter from the Minister to the Chair relating to the Committee’s report on the Mineworkers’ Pension Scheme
Parliament page
13 May 2021 To committee Letter from the Chief Secretary to the Treasury to the Chair relating to the Mineworkers’ Pension Scheme
Parliament page
29 Apr 2021 To committee Letter from the Chair to the Chancellor of the Exchequer relating to the Mineworkers’ Pension Scheme
Parliament page
29 Apr 2021 To committee Letter from the Chair to the Minister for Business, Energy and Clean Growth relating to the Mineworkers’ Pension Scheme
Parliament page
27 Apr 2021 To committee Letter from the Minister to the Chair on the Mineworkers’ Pension Scheme
Parliament page
27 Apr 2021 Selected emails received by the Business, Energy and Industrial Strategy Committee as part of the inquiry into the Mineworkers' Pension Scheme
Parliament page
27 Apr 2021 To committee Letter from Jonathan Gullis MP on the Mineworkers’ Pension Scheme
Parliament page
15 Apr 2021 To committee Letter from The British Coal Staff Superannuation Scheme to the Chair regarding pensions to former staff of British Coal
Parliament page
15 Apr 2021 To committee Letter from Lee Anderson MP to the Chair regarding the Mineworkers’ Pension Scheme
Parliament page
15 Apr 2021 To committee Letter from Aaron Bell MP to the Chair regarding the Mineworkers’ Pension Scheme
Parliament page
13 Apr 2021 To committee Letter from the Trustees of the Mineworkers’ Pension Scheme in follow up to oral evidence given on 23 March
Parliament page
13 Apr 2021 To committee Letter from Grahame Morris MP to the Chair regarding the Mineworkers’ Pension Scheme
Parliament page