Grahame Morris MP says government 'neglecting' communities in call for miners pension reform

A North East MP has called on the government to reform mineworkers' pensions, accusing the government of "widening economic inequality".

Grahame Morris, Labour MP for Easington, said coalfield communities had been neglected - with some retired miners receiving just £10 a month under the current pension scheme.

Since it was privatised in 1994, half of surpluses from the Mineworkers' Pension Scheme have been paid to Government amounting to a total of around £4.8 billion.

The Easington MP told the Commons: “The Government have ignored and neglected our most deprived mining communities, far from levelling-up, Conservative ministers have widened economic inequality.

“Low wealth in our region coincides with low wages, making my region in the North East the lowest paid region in the country.

“The Government could alleviate this in part by addressing past injustices and ensuring retirement security for mine workers and their widows, by reforming the Mineworkers’ Pension Scheme, in line with the (Business, Energy and Industrial Strategy) select committee recommendations that were published in April 2021.

“My father died in the belief that his pit pension would provide security for my aging mother – who is incidentally celebrating her 88th birthday on Sunday.

“However, we do know that some pensioners receive as little as £10 a week from the Mineworkers’ Pension Scheme. Our miners created the wealth that made this country great, with the Mineworkers’ Pension Scheme being amongst the UK’s largest pension funds.

“However money that should be used to provide security in retirement is being siphoned off by the Treasury, taking half of all the pension funds’ services."

Labour MP for Wansbeck Ian Lavery, himself a former miner, says he believes he is the only MP that is currently a member of the Mineworkers’ Pension Scheme.

He said: “The Mineworkers’ Pension Scheme, it’s deferred wages, any pension is deferred wages, and that’s to be recognised. The 50/50 split came in 1994, it was a crime. £4.4 billion plus syphoned off, trousered by the Tory Government."

Conservative MP Paul Howell, who represents Sedgefield, said a lack of connectivity was letting down former mining villages, adding: “How can residents aspire to social mobility, if they don’t even have the physical mobility to reach better jobs.

Communities minister Lee Rowley said Labour “does not own the story of mining in our country”, adding: “Labour do not get to disregard the settled pension arrangements, arrangements defended by the Labour party for 13 years when they were on this side of the House.”

Mr Rowley accepted “there is more to do on levelling-up”, adding: “We have always indicated that levelling up was a long term initiative which will take time to work, but at least this Government has made progress.”

He continued: “Mining communities have had a significant amount of attention from this Government, and I’m extremely proud to represent a mining community in doing so.”

When asked about mineworkers pensions, the Department for Energy Security and Net Zero spokesperson said: “We are protecting the pensions of mineworkers, while striking a fair balance between scheme members and taxpayers.

"Mineworkers’ Pension Scheme members are receiving payments 33 per cent higher than they would have been as a result of the Government’s guarantee.

“On most occasions, the scheme has been in surplus, and scheme members have received bonuses in addition to their guaranteed pension.”

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