The government is poised to hand miners £2.3bn before the end of the year, a sector pension scheme has confirmed.The government is poised to hand miners £2.3bn before the end of the year, a sector pension scheme has confirmed.The government is poised to hand miners £2.3bn before the end of the year, a sector pension scheme has confirmed.

The Labour Party government is poised to dip into the reserve fund to pay 40,000 pensioners up to £55,000 each. The government is poised to hand miners £2.3bn before the end of the year, a sector pension scheme has confirmed.

The money is held in the British Coal Staff Superannuation Scheme’s (BCSSS) investment reserve fund, a government-owned pot that protects taxpayers from footing the bill for 40,000 pensions.

The transfer could net eligible retirees up to £55,000 each on average. Pensions consultant, John Ralfe, said: “Under current rules, the £2.3bn will be repaid to taxpayers in 2033, which amounts to a post-dated cheque. Why should we tear up that cheque and instead give £2.3bn of taxpayers’ money to the members?

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“If we do, this means there is no cushion to meet any future deficits, so taxpayers will have to write cheques to plug the gap, potentially for decades.

“This also ramps up things for Rachel Reeves – the person making the decision. Every day there is a possible new tax wheeze floated. If this money is given away, that’s another £2.3bn she will have to raise through taxes.”

A DESNZ spokesman said: “Minister Jones recently met with Trustees of the BCSSS and is talking to the Treasury about their proposals. We will provide an update in due course.”

The scheme’s chair, Cheryl Agius, said: “I believe that we are now close to what I hope will be a complete and lasting resolution to this issue. Sarah [Jones] told us that she has now made a recommendation to HM Treasury regarding the investment reserve transfer to members.

“She is unable to share the details until HM Treasury responds to her proposal, but she is happy for her team to work closely with the Trustees over the summer to prepare for a possible transfer.”