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 17 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 Rejected
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
The government rejects the committee's conclusion, stating that the Trustees did have a choice regarding the 1994 proposal and could have declined the guarantee. It maintains that the 1994 arrangement was fair and beneficial to both Scheme members and taxpayers.
Department for Business and Trade
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2 Conclusion Rejected
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
The government rejects the conclusion, asserting that the Trustees had a choice in 1994 and that the agreed arrangement was fair and beneficial due to the government taking on all the risk.
Department for Business and Trade
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3 Conclusion Rejected
Sixth Report - Mineworkers’ Pensio…
The 50:50 split was, and remains, arbitrary.
The 50:50 split was, and remains, arbitrary.
Government Response
The government rejected the conclusion, asserting that the Trustees had a choice in 1994 and reiterating its belief that the 50:50 arrangement was fair and beneficial to both scheme members and taxpayers.
Department for Business and Trade
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4 Conclusion Rejected
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
The government rejected the implied criticism of the Mineworkers’ Pension Scheme arrangement, arguing that the 1994 agreement was fair, beneficial to members and taxpayers, and that trustees had a choice to decline the offer and its associated guarantee.
Department for Business and Trade
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5 Conclusion Not Addressed
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
The government's response focuses on defending the fairness of the 1994 agreement and the risks it took on, but does not directly address the committee's specific finding that the government has not paid any funds into the Scheme since 1994.
Department for Business and Trade
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6 Conclusion Not Addressed
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
The government's response defends the fairness of the 1994 pension agreement and the Trustees' autonomy, but does not address the committee's concerns about the chronic health issues and financial struggles faced by former mineworkers.
Department for Business and Trade
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7 Conclusion Rejected
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 explicitly rejects the committee's conclusion, stating it continues to believe the 1994 arrangement for sharing surpluses in the Mineworkers’ Pension Scheme is fair and beneficial because the government has taken on all the risk.
Department for Business and Trade
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8 Conclusion Not Addressed
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
The government response consists only of a title and does not address the committee's conclusion regarding the Mineworkers’ Pension Scheme's financial health and the likelihood of government contributions.
Department for Business and Trade
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9 Conclusion Not Addressed
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
The government acknowledges the historical context of miners' conditions and compensation but fails to address the conclusion that the 1994 pension arrangements have unduly benefited the government and are now untenable.
Department for Business and Trade
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10 Conclusion Not Addressed
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
The government acknowledges the historical context of miners' conditions and compensation but does not address the conclusion that it should not profit from mineworkers' pensions or that the current arrangements conflict with levelling up goals.
Department for Business and Trade
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11 Recommendation Not Addressed
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
Government Response
The government acknowledges the historical conditions and its compensation for former miners, but does not address the committee's recommendation regarding the government's claims about the Trustees' contentment with the pension arrangements.
Department for Business and Trade
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12 Recommendation Not Addressed
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
Government Response
The government did not address the recommendation about approaching future discussions with an open mind, instead acknowledging the harsh conditions miners faced and past compensation efforts for health issues.
Department for Business and Trade
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13 Recommendation Not Addressed
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
Government Response
The government acknowledges the historical context of coal miners' conditions and its compensation efforts but does not address the recommendation to review or replace the current pension arrangements.
Department for Business and Trade
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14 Recommendation Rejected
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
Government Response
The government rejected the recommendation to hand the £1.2bn Investment Reserve back to miners, but stated it is willing to explore with Trustees options for providing members with a lump sum payment within the existing framework.
Department for Business and Trade
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15 Conclusion Rejected
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 rejected the conclusion, stating it continues to believe the 1994 arrangement was fair and beneficial to both scheme members and taxpayers, with the government bearing all the risk.
Department for Business and Trade
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16 Conclusion Acknowledged
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 acknowledges the harsh conditions faced by coal miners and states that it took on liabilities at privatisation, compensating former miners and their families for health issues.
Department for Business and Trade
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17 Recommendation Rejected
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.
Government Response
The government rejects the recommendation, stating it does not accept that it has unduly benefited from the surplus sharing arrangements, which it views as successful and beneficial to all parties.
Department for Business and Trade
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18 Recommendation Not Addressed
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
Government Response
The government did not address the recommendation to carefully consider the committee's proposed equitable arrangements, instead referencing the Trustees' past preference to retain the guarantee and prioritising bonus protection.
Department for Business and Trade
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Government Response AI assessment · 18 of 6 classified
Acknowledged 1
Not Addressed 9
Rejected 8
Total 6 recs + 12 conclusions
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 Jonathan Gullis MP 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 the Minister to the Chair on 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
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
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