Over 100,000 former mineworkers receive first pension increase
29 November 2024
Over 100,000 former mineworkers will receive a pension increase of up to £25 a week as part of the government’s commitment to ensuring they are properly rewarded for their service. This will be the first increase in the Mineworkers’ Pension Scheme since it was set up in 1994, and comes into force from 31st March 2025.
The government recognises the important contribution mineworkers, including those who worked in the coal industry, have made to the national economy and provision of secure energy in the past.
The increase to existing scheme members will cost the government £115 million a year. The average pension payment will rise by £1,300 to £7,300 a year and will benefit around 105,000 people. The increases will range from £10.55 to £25.60 a week depending on how much a miner earned and how long they worked for.
This increase is in addition to the government’s £850 million Mineworkers’ Pension Scheme Support Fund, which has been providing short-term support to miners with respiratory conditions who receive an Automatic Pension Increase (API) of less than 2.5%.
A further consultation will be launched in early 2025 to consider the potential of a long-term solution to address the issue of low pension increases.
Minister for Pensions, Guy Opperman said:
“This government is committed to rewarding the historic contribution of our industrial workers. This pension increase for former mineworkers is part of a suite of measures we have launched to restore dignity and fairness to those who toiled in the industry.
“I recognise the financial difficulties many pensioners are currently facing, and I hope this increase provides some certainty at a difficult time.”
This follows the launch in December 2023 of the government’s dedicated Industrial Injuries Disablement Benefit (IIDB) for coal miners. This scheme gives a monthly payment of up to £177 to mineworkers who are suffering an illness they believe has been caused by their time working in the coal industry.
Notes to editors:
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The Mineworkers’ Pension Scheme (MPS) was set up by the government in 1994 to pay additional pensions to former coal miners who retired before 5 April 1985 and who were in receipt of a British Coal Staff Superannuation Scheme pension.
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The normal scheme pension increases each year by the lesser of 3% or the Retail Prices Index (RPI) measure of inflation. However, this increase is capped at 2.5%. As a result, many former miners have received pension increases that have failed to keep pace with the rising cost of living.
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The scheme uplifts will be paid from 31st March 2025, with payments backdated to 1st April 2024.
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Further information on the increase can be found on the Coal Industry Social Welfare Organisation (CISWO) website www.ciswo.org.uk
Over 100,000 former mineworkers receive first pension increase
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