Bolsover MP Natalie Fleet has been joined by Chesterfield MP Toby Perkins in welcoming a £1.5bn boost to former miners’ pensions as part of the Autumn Budget announcement.
The Labour Government says it presented a budget on October 30 based on borrowing with a massive £40bn of tax increases to be shouldered by businesses and others to support economic growth and investment to allow for better public services.
Despite criticism of its increases to Employers’ National Insurance, Capital Gains Tax and Inheritance Tax, the Government has pledged to return a £1.5bn investment reserve into the Mineworkers’ Pension Scheme alongside a pledge of £13bn for infected blood and Post Office scandal victims.
Labour MP Ms Fleet said: “In the first speech I made in Parliament, I spoke about how our towns and villages were devastated by the Conservative closure of our pits.
“While [former Bolsover MP] Dennis Skinner represented more than 10,000 working miners, I represent 3,501 retired miners.
“I am ecstatic that they are finally getting the justice they deserve, brought about by this Labour Government that is delivering for Bolsover and for Britain.”
A total of 3,501 ex-miners in Bolsover will benefit from the move, according to Ms Fleet, with their pensions being boosted by 32per cent, or an average increase of £29 per week.
And Labour Chesterfield MP Toby Perkins said 1,295 former mineworkers in Chesterfield will receive the same immediate uplift in their weekly pension which will amount to about £1,500 a year for each recipient.
Mr Perkins claims the budget has taken some key steps towards steering Britain back on to a path of economic security and he believes it will also right some ‘historic wrongs’ by including the £1.5bn pledge towards the Mineworkers’ Pension Scheme.
He said: “This Budget also rights some historic wrongs that the previous Government deliberately ignored – we will be returning the £1.5bn investment reserve back into the Mineworkers Pension Scheme, which means 1,295 former mineworkers in Chesterfield will receive an immediate 32per cent uplift in their weekly pension, an extra £29 per week, or ‘£1,500’ a year.
“We will also provide the fair compensation needed to the victims of the Infected Blood and the Post Office Horizon Scandals. Unfortunately, there will be many victims of this scandal, and many miners, who have died before they could receive the justice and compensation they deserved.”
The £1.5bn pledge follows a longstanding campaign by ex-pit workers, unions, pension trustees and Labour MPs for coalfield constituencies.
Around 112,000 retired former miners across the UK are set to benefit from the announcement.
The investment reserve fund was set up using profits from the scheme in 1992 to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit.
This money was due to be returned to the Government in 2029 but it will now be moved into the pension scheme under the Autumn Budget and trustees have begun working to deliver the bonus into pension pay packets as soon as possible from this month.
Chris Kitchen, General Secretary of the NUM, said: “The Labour Party recognised the injustice of the Mineworkers’ Pension Scheme whilst in opposition.
“Now in Government they have made good on their manifesto commitment to return the Investment Reserve Fund so it can be used to increase pensions. This is the change we voted for.”
The Government is also going to deliver on its commitment to review the Mineworkers’ Pension Scheme’s surplus sharing arrangement where the scheme has produced profits, according to Ms Fleet. to ensure former miners and their families get a fairer deal in the years ahead.
Many have become deeply troubled by the Government’s plan to increase Employer National Insurance, and Capital Gains Tax and Inheritance Tax as part of the budget with concerns this could all lead to higher inflation, higher interest rates and mortgage costs and ultimately austerity.
However, Council Leader, Cllr Steve Fritchley, of Labour-controlled Bolsover District Council Council, said: “I think this is a brave budget. A budget that relies on income and savings throughout this Parliamentary period.
“It is too soon to judge the impact of the budget on our finances, but one thing for certain is I am pleased to see the Government is now following this council’s philosophy on growth and building houses.
“The increase of money generated through growth follows the Keynesian theory and will benefit everyone from the small independent shopkeeper to the trades men and women across our district.”
