Ex-mine workers are set to receive extra retirement payments after the Chancellor announced she would release funds from a pension scheme

Hundreds of ex-miners in Stoke-on-Trent and North Staffordshire are set to receive extra retirement payments after the Chancellor announced she would release funds from a pension scheme.

MPs and former pit staff in coalfield communities have been calling for the release of £2.3 billion in reserves from the British Coal Staff Superannuation Scheme (BCSSS).

During her Budget speech on Wednesday Rachel Reeves said she had made the decision to meet their demands after pressure from Labour MPs.

The decision is expected to impact around 800 pensioners in Stoke-on-Trent and Newcastle-under-Lyme who worked at sites like Silverdale Colliery and Chatterley Whitfield.

Ms Reeves said: “I will transfer the investment reserve fund of the BCSSS to its members so that the men and women who worked in our coal industry get a fair deal in their retirement too.”

Adam Jogee MP, who represents Newcastle-under-Lyme, welcomed the Government’s decision. He said the decision delivered ‘major pension justice’ for the 238 local members, and their families, in the borough.

Mr Jogee, who is vice chair and West Midlands lead of the Labour Group of Coalfield MPs, said: “Former coalfield communities like ours here in Newcastle-under-Lyme and across North Staffordshire know what it means to stand up for, and recognise, the people who powered our country.

“Today, justice has been secured for members of the British Coal Staff Superannuation Scheme (BCSSS) with the return of the £2.3bn investment reserve.”Since my election, I have made it a priority to fight for the justice that British Coal Staff deserve. As the MP for a proud former coalfield community. I have pressed this case in Parliament, in meetings with the Chancellor, in discussions with Ministers, and through direct engagement with the BCSSS trustees to ensure that Newcastle-under-Lyme’s voice has been heard loud and clear.”This is a major step forward. It rightly acknowledges the contribution of generations of coalfield workers – people whose knowledge, skill, and tenacity kept the lights on and powered Britain for decades. I know many across our borough will welcome this long-overdue progress.”For 238 BCSSS pensioners in Newcastle-under-Lyme, this means the uplift they have long deserved. It is proper recognition of their hard work and service – and a reminder that when we stand up for our communities and make our case clearly and consistently, we can deliver real and meaningful change.”

David Williams, MP for Stoke-on-Trent North and Kidsgrove, said the announcement delivers “long-overdue justice for the people who kept this country running.”

Mr Williams said: “This is a huge win for former mineworkers in our community. Returning the £2.3 billion reserve is the right and overdue decision, and it brings long- awaited fairness to the people who powered Britain. I have pressed for this consistently since being elected, and I am proud that Labour has delivered for coalfield communities.”

Silverdale Colliery in 1951

“Our mining heritage runs deep here; just look at the history at Chatterley Whitfield and listen to the stories of the proud former mineworkers who still call this place home. I will always stand up for them and ensure they receive the recognition and support they deserve.”

He added: “The 4.8 per cent rise in the State Pension is another important step that will help thousands of local pensioners with the cost of living.”

The BCSSS began in 1947 but, following the privatisation of the coal industry in 1994, the government became a guarantor. Under that deal, the government was entitled to half the surplus money but nothing has been taken since 2015 when that agreement ended.

The government still guarantees the scheme’s pension benefits. According to a parliamentary briefing, between 1995 and 2015 the government received £3.1 billion from the scheme and is due to have another payment of £1.87 billion in 2023.

The scheme has about 40,000 members, including up to 5,000 women and widows of former miners.

Today’s decision means BCSSS members will now be treated in the same way as former Mineworkers’ Pension Scheme members, whose investment reserve was transferred last year. The Government has approved a new bonus pension equal to 41% of members’ guaranteed pension, backdated to 1 November 2024. Payments will begin as soon as practicable, with pensioners expected to receive their enhanced payments – and a backdated lump sum – no later than Christmas 2025, subject to final processing timescales.

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