Nearly 7000 former Scots miners to receive over £10m yearly after pension scandal injustice

Nearly 7,000 former Scottish miners are set to receive over £10 million annually following a pension scandal injustice. The UK Government will be paying out £200,000 each week to these ex-miners, equating to £10.4 million every year.

Chancellor Rachel Reeves made the announcement in her Budget, revealing that the £1.5 billion mineworkers’ pension fund would be handed entirely to former miners and their families. This decision comes after years of discontent over an unfair arrangement that allowed the UK Government to claim half of the pension surplus.

As part of a government review, steps will be taken to ensure that former miners and their families receive a fairer deal moving forward. The average boost to pensions for the 6,884 former miners in Scotland is £1,500, representing a 32% increase in their annual pensions. This amounts to an extra £29 per week for each recipient.

Scotland Office minister and MP representing the mining community of Midlothian, Kirsty McNeill, expressed that the funds are back where they rightfully belong. She highlighted the significant contributions made by miners to Scotland’s industrial past and commended the campaigners who fought for pension justice.

The financial support will make a tangible difference in various mining communities across Scotland. McNeill’s constituency has the highest number of ex-miners benefitting from the boost, with others in regions like Glenrothes, Cowdenbeath, Kirkcaldy, Ayr, Carrick, Cumnock, Dunfermline, Dollar, Alloa, Grangemouth, Kilmarnock, Loudon, Lothian East, Bathgate, Linlithgow, Stirling, Strathallan, Airdrie, and Shotts also receiving the payments.

The backstory of the unjust pension scheme dates back to 1994 when the Conservative Government privatised British Coal, leading to an agreement where the government could claim half of the scheme’s surplus. Despite the scheme generating significant returns, the UK government profited £4.8 billion over three decades without contributing any funds.

This news of rectifying the pension scandal serves as a positive outcome for the retired miners and their families who have long advocated for fair treatment in pension provisions.

In summary, the resolution of the pension scandal serves as a long-awaited victory for the former Scottish miners who have fought tirelessly for pension justice. The decision to allocate the entire mineworkers’ pension fund to the ex-miners and their families will bring much-needed financial relief and recognition to these communities that played a vital role in shaping Scotland’s industrial history.