British Coal Staff Superannuation Scheme

Motion made, and Question proposed, That this House do now adjourn.—(Gen Kitchen.)

17:57:00

Before I start, I declare an interest in this debate as a member of the British Coal staff superannuation scheme, which, for the purpose of this debate, I will refer to as the BCSSS. Before I go on, I want to say a special thanks to the BCSSS Facebook campaign group, which has been a great source of support and advice. The group represents more than 2,500 scheme members, and I am sure many will be watching this debate right now. All the arguments for a fairer deal for BCSSS members have been heard before, so I want to take this opportunity to speak as an ex-coalminer, and as the only member of the BCSSS, I think, in this Parliament—and yes, I have a financial interest in this, but I feel that I am qualified to speak up on behalf of members of the BCSSS. I know that he hon. Member for Blyth and Ashington (Ian Lavery), another ex-coalminer, is present; I am sure he will support many of the things I have to say. I am the last generation of coalminers in my family. I followed my dad, my granddad, my great-grandads and my great-great-grandads into the pits in Nottinghamshire and Derbyshire. In fact, I cannot think of any male family member before me who did not spend some time underground. I worked at four different pits. Miners will usually say that the best pit they worked at was their first pit, and my first pit was Sutton colliery in Ashfield, north Nottinghamshire. I started there about a year after the miners’ strike in the 1980s. It was a great pit, but this was a pit where, sadly, just a few decades earlier, five men had been killed in an explosion. I went on to do my coalface training at Creswell colliery in Derbyshire, where in 1950, yet another disaster had occurred: 80 boys and men lost their lives in an underground fire. We have had countless disasters, horrific accidents and nasty things going on, but still men and boys went down the pit—the black hole—to do a shift, digging coal out to fuel our nation. It is hard to describe what it is like to work underground; there is nothing like it. It is dark and dangerous. It can be red hot in some places, yet freezing cold in others. There are no toilets, as the hon. Member for Blyth and Ashington can tell us. We just had to dig a hole and then cover it up. It is hard to explain what it is like crawling up and down a coalface, which is 29 inches high and 250 yards long, with a shearing machine spitting out coal, dust, heat and oil. It was a horrible feeling. It is hard to explain what it is like to carry a steel ring on your shoulder—a girder—with your mate, on uneven ground and in dusty conditions. It is hard to explain what it is like to bandage up a workmate who has just been trapped, has had a big chunk ripped out of him and has lost a few fingers and half a foot. He has to be put on a stretcher and carried out to the pit bottom. On one occasion, that was seven miles of the pit—seven miles underground. That is from here to the edge of London. But that is what we did—we did that for a living, day in, day out. We didn’t moan. Towards the end of my mining career—the last three years of it—I worked as a deputy underground. I was responsible for the health and safety of the men in my district. When I became a deputy, I was transferred from the mineworkers’ pension scheme to the BCSSS. I did not have any say in it; they just put me in it. That is what they did. While we continued working—digging the coal to fuel the nation and keep the lights on—all we asked for was a fair day’s pay for a fair day’s work. The pits are long gone now, but there are still thousands of ex-miners and their widows in the coalfield communities—

My constituency of Sherwood Forest has the second largest BCSSS membership in the country. Almost 40% of the membership is women—women who were formerly employed in the mining industry, and women who were the spouses of members who have sadly died. Does the hon. Member agree that it is vital that the Government deliver justice for this scheme not only for constituencies such ours in Nottinghamshire but also for women?

Yes, I will come on to the women who worked in our industry a bit later, but the hon. Lady is absolutely correct. All we ask for now that the pits have gone—we still have the communities—is a fair day’s pay from our own pot of money. That pot of money is the £2.3 billion investment reserve fund. That is our money. We paid it in. All we are asking is for the Government to give it back to us.

I commend the hon. Gentleman for securing this debate. I would never have known about what happened in the mines, but for the stories that he has told us. He has told those stories in debates in this House in the past. I thank him for his service. We congratulate the Nationwide building society for doing the right thing and sharing the bonus that it earns with its customers. Therefore, with great respect, Minister, the fact that the Government seem to be dragging their heels on seeing mineworkers receive rightful dividends from their back-breaking, life-altering work is jarring and must be addressed as a matter of urgency.

I thank the hon. Member for his intervention. As always, he makes a fantastic contribution and I agree with every single word that he has just said. The Labour party was founded on the backs of coalminers, and I think it is time for the current Labour Government to repay those miners. They should remember that the miners paid their union subs; they helped to bankroll the Labour party. Let us be honest, the Labour party has supplied some good ex-mining MPs to this House. There is one sat there tonight. There was one who used to sit over there. I do not agree with their politics, but they are great MPs. Let us remind ourselves that about 4,000 or 5,000 women are part of the BCSSS. We could not have done our job underground if it were not for those women, who did a great job. Then there are the widows of the ex-miners who would love to see a few extra quid in their bank account each month when fuel bills are going through the roof. About 2,000 members of the BCSSS die every year, and there are less than 40,000 members still in the scheme.

The hon. Member and the House will know that I am a big supporter of returning the reserve to the fund, particularly because many members are dying. The hon. Member sat as a Conservative Member on the Government Benches for a number of years and, indeed, was deputy chairman of the Conservative party while they were in government. Given the promises that Boris Johnson made in Mansfield in the 2019 election, why did the hon. Member do nothing to correct this injustice, since so many members of the scheme are passing away each year? Would he agree that it is somewhat hypocritical to now be championing this issue?

If the hon. Member had studied Hansard and paid a little more attention to Parliament during the past five years, he would know about the representations I made. In fact, I had my own Adjournment debate on the MPS. I met the former Prime Minister and the Chancellor of the Exchequer to discuss the mineworkers’ pension scheme and the miners’ asks, so it is a bit unfair of the hon. Member to try to score points in a very serious debate. I would have hoped that he would come here to support me in this debate, instead of trying to score political points. I do not think it is a good look, and I am sure that the BCSSS members in Mansfield and across Ashfield will not be very happy with his contribution.

Will the hon. Member give way?

I will make some progress. As I said, there are 40,000 members left in the scheme, and it will not be that long until there are just a few thousand of us left. Meanwhile, miners and widows die without getting the justice they deserve. Members may find it hard to believe, but I am 58 years old, and I am one of the youngest members in the scheme. Many members are over 70 years old. In fact, the average age of a member in the scheme is 75, and time is running out for these old colliers to get what they deserve.

Will the hon. Member give way?

I will make some progress. It is worth remembering that when the last member of the MPS dies, the billions of pounds in the fund go straight to the Treasury and the Government of the day, and they can spend that money on whatever they like.

I want to put it on the record that we have seen a transformative intervention by this Labour Government on the mineworkers’ pension scheme, and over 100,000 former mineworkers already received their first pension increase in November last year. I wonder whether the hon. Member might want to congratulate the Government on that innovation.

If the hon. Member shows a little patience, he will hear me move on to that later. The previous Labour manifesto stated that the reserve funds of both the MPS and the BCSSS would be released to members, yet the BCSSS was omitted from Labour’s manifesto in 2024. Maybe the Minister can explain why that was. She may be aware—obviously the hon. Member for Mansfield (Steve Yemm) is not aware of this—that during the last Parliament, I continually pressed the Government for a fairer deal on the MPS, and I was knocked back at every single opportunity. Credit where credit is due, this Labour Government have stuck by their word, and the members of the mineworkers’ pension scheme are a lot better off under this Labour Government due to the extra money in their pay packet.

Time is of the essence. While colleagues across the House may differ on these issues, we represent constituents who continue to suffer from the historic injustice created by the hon. Member’s former Tory Government. Thousands of miners have died without justice, with 2,000 passing every year. This is about fairness, and the Government have acted, but does he agree that they are right to resolve this swiftly so that no more families wait in vain for their money?

I think that the hon. Member is getting a little confused; she probably needs a history lesson. There was a Labour Government for 13 years from the ’90s that could have put this right—it works both ways. It is unfair to blame just the Conservative Government; I would blame both Governments. To go back to the surplus from the MPS, I thank the Labour Government for giving the mineworkers their much deserved reserve fund, but I gently remind them that they should act to implement the full findings of the Business, Energy and Industrial Strategy Committee’s 2021 report. By the way, that is Reform UK’s policy. Sue Edwards from Ashfield is a BCSSS pensioner who has asked me to keep pushing on this issue. She said that although women members never worked underground, their contribution should never be forgotten. Sue is right: we should never forget the contribution made by women at our collieries. There are about 800 members of the BCSSS in Ashfield. One of them is Paddy Gumley, who will be watching the debate right now. He sent me an email yesterday, which said: “Dear Lee, Thank you for your email regarding the forthcoming debate on the BCSSS…We will watch out to ensure that the Treasury give sensible answers to your questions…and hopefully…will…bring this matter to a satisfactory conclusion. We are quite happy for you to use our names should you think it necessary. Again, I wish to advise you that I am now over 80 years old and have recently been treated for cancer, so time…is of the essence.” I think we all know what Paddy means: in plain English, “Please give me my money before I die.” None of us is getting any younger, and transferring the investment fund now to members would allow pensioners to live a more dignified life in their final years. It would also put tens of millions of pounds back into local coalfield communities, helping local shops and businesses prosper. Let us not forget that if these pensioners get this extra money, they will be taxed on that extra revenue, which will go back to the Exchequer. The trustees have two simple requests: the return of the £2.3 billion investment reserve to the members as soon as possible this year, and a commitment to review how any future surplus will be shared out after the investment reserve is returned. I have yet to find a coalfield MP who does not agree with those simple requests. Most coalfields are now represented by Labour MPs, and I am really hopeful that in the four years they will still be here, they will put pressure on the Treasury and the Government to provide justice for members of the BCSSS.

I sincerely hope that many of the Labour Members in the Chamber will be here for more than four years. The key point that the hon. Member alluded to is the need for us to work effectively together, recognising that, as he described, we have a whole range of constituents who would benefit from the BCSSS being treated differently. Does he therefore welcome the constructive way in which Labour Members are working?

Yes, I like to be constructive. The hon. Member for Mansfield has not been so constructive; he has used the debate to try to score political points. I am using the debate to try to get justice for the members of the BCSSS. The trustees were disappointed by the previous Conservative Government, and they are a little bit disappointed with the current Labour Government, who they feel have dragged their heals in dealing with the BCSSS. They have dealt with the mineworkers’ pension scheme much quicker. We are all ex-mineworkers, and we should be treated fairly. I know the trustees have met the Minister today. I have spoken to the chief integrated funding adviser and the feedback is that it was a positive meeting, and the Minister once again appeared receptive to the requests put forward by the trustees but stopped short of saying she fully supports those requests. There is a very simple solution to all this. Just give us our money back—it is our money—and let us discuss the future surplus sharing agreements. We ex-miners should not be a cash cow for the Treasury. I could go into all the facts and figures in this debate, but it is simple. It is about giving back to the mining community what it is owed. Not only did the miners of the past help create the Labour party, but they gave their money to the cause through their union donations. It is time to pay back the miners; there should be no excuse. Let us imagine two brothers in their 70s who spent 40 years each down the pit. One is in the MPS and the other in the BCSSS. They worked side by side underground. The brother in the MPS has just had a 50% uplift in his pension thanks to this Labour Government, but the one in the BCSSS has had nothing. That cannot be right; it is not fair. I hear people in this bubble in Westminster say that young people would not go down the pit these days, but you are all wrong—every single one of you. In the coalfield communities, mining, hard graft and a sense of working-class pride are in our DNA. When the time comes for mining communities to step forward and go back underground, the descendants of our brave miners will do their duty. That time will come, mark my words. In the meantime, it is time for this place to deliver justice for the miners. I would like to hear the Minister state from that Dispatch Box that she fully supports the trustees’ two main requests and that she agrees that the whole of the investment reserve fund, and not just part of it, should be shared out. There was a saying when I worked underground and all the pits were shutting. It was: “Have we heard owt, duck?” That is what ex-miners are saying right now to their pit mates, so I say to the Minister, who I know has been speaking to the Treasury and the trustees: have you heard owt, duck?

18:16:00

I thank the hon. Member for Ashfield (Lee Anderson) for securing this debate, and I welcome the opportunity to set out the Government’s position on the BCSSS. There are a lot of hon. Members in attendance. Many have long associations with the coalfield communities they represent, and I know that this is an incredibly important issue to many people across the country. It is also a matter of great importance to me, and I am pleased to be speaking to the House following a meeting I had with the BCSSS trustees this afternoon.

When we speak of the mineworkers’ pension, we speak of everyone who has sustained our pits, such as my constituents Anthony Peck, who joined the scheme aged 17, and Kevin Jowle, automatically enrolled when he became a deputy, without any consultation. Does the Minister agree that everyone deserves a fair pension and compensation for the £3.2 billion that the Treasury has received to date?

We believe that everybody deserves a fair pension, and I totally agree with my hon. Friend. I want to set out where we have got to. As Members will be aware, this Labour Government committed in their manifesto to ending the injustice of the mineworkers’ pension scheme, and I was incredibly proud to deliver on that commitment last October. We committed to transferring the investment reserve fund back to members and reviewing the surplus arrangements so that the mineworkers who powered our country receive a fairer pension. I was incredibly proud that, after only three months in power, the Chancellor announced the transfer of that investment reserve fund at the Budget in October. This was the action of a Labour Government overturning an historic injustice that the previous Government had failed to act on.

Does the Minister agree that it is thanks to campaigners such as Bobby Clelland in my constituency and to the local party that we have managed to succeed in having the MPS move towards a resolution and seeing that money being paid out to those communities in the coalfields in my constituency? It is also thanks to people such as Alan Kenney in my constituency, who is leading the campaign in Scotland on the BCSSS. I hope that she will be able to give us some good news. Does she agree that this is thanks to those former miners who are always standing up for their communities and still fighting now for the justice they deserve?

Of course my hon. Friend is right. I want to thank everybody who has campaigned and worked for so long on the mineworkers’ pension and everybody who has been in touch with me and with colleagues across the House on the BCSSS. One of the most humbling events I have been to in my political life was speaking to former miners following the announcement on the mineworkers’ pension. I am incredibly grateful to the many people who have campaigned and who are getting in touch and showing us how important this is. Of course, we completely understand it.

This is a new topic to me personally. I was contacted by a constituent whose late husband, a good friend of mine, Michael Green, worked for British Coal at the time. He too was passionate that this money should be returned to the miners. Does the Minister agree that we need to get on with this and get this to happen as quickly as possible?

We are certainly moving as fast as we can. I will explain where the process has got to, and I hope that Members will be reassured. The transfer of £1.5 billion from the mineworkers’ pension boosted pensions by 32%, which was an average increase of £29 a week for each member. The hon. Member for Ashfield made the point that this is about putting money not just into people’s pockets but into local communities, and that is incredibly important. I also understand that in the context of the BCSSS in exactly the same way. My officials are working closely with the trustees of the mineworkers’ pension on the review of the future surplus sharing arrangements, and we hope to come forward with proposals and reach an agreement on that soon. Having worked closely with the coalfield communities on the delivery of the mineworkers’ pension, I completely recognise the strength of feeling on the BCSSS.

I want to place on record my sincere thanks on behalf of my constituents and the people who work in the mining industry across the country for the fantastic work the Minister is doing in relation to the finances in the mineworkers’ pension scheme. Might she be able to inform the House what the main differences are between the MPS receiving the money and the challenges with regard to the BCSSS?

I thank my hon. Friend for his kind words, and I will do exactly that and set out what the challenges and the differences are. Having a process of work ongoing with the mineworkers’ scheme and working out how we will do surplus sharing, we are now working on the BCSSS and what we do in that space, even though it was not a manifesto commitment. I wrote to the Chief Secretary to the Treasury in February and secured his agreement to undertake a similar review of the BCSSS, and that review is now well under way. The schemes are not identical. They are different, and the main difference is that there are currently no surplus sharing arrangements in the BCSSS. That is because they were removed in 2015 following two deficit valuations. The situation at that time meant that members were unlikely to realise any increases to their pensions for a decade or more, and the Government risked having to find new money to fund pensions. Changes were therefore made, and an agreement was reached with the then Government that bonus pension increases would be paid for three years and that the scheme would invest so as to ensure that pensions could be paid, with the aim of returning the reserve to the Government in 2033. That is the main difference. I met the BCSSS trustees, to whom I am grateful. We are working well together and will continue to do so. I first met them in April, during which I shared my determination to move at pace—that is a Government saying, isn’t it? But we will genuinely move as fast as we can on the review and to start that process for the Government and trustees, and we jointly commissioned analysis from the Government Actuary to inform our decision making.

I have heard from many of my constituents affected by the BCSSS, and many are advanced in age so there is a real need for speed. I appreciate the Minister setting out how committed she is to getting this sorted as quickly as possible and would appreciate hearing about any further things she could do to expedite it.

I completely appreciate my hon. Friend’s comments. I think everybody in this House shares them, and I feel that strongly and am committed to doing exactly that. We have recently received the analysis from the Government Actuary on the options for making a transfer to scheme members. Because we received that information, I had a meeting with the trustees today to hear their views on that analysis. At that meeting, I committed to move at speed. My officials are meeting the Treasury tomorrow. We are going to put a recommendation to the Chief Secretary to the Treasury, and I made a commitment to meet the trustees again before the summer break so we continue to make progress as fast as we can.

I am proud to have supported the BCSSS campaign since long before I became an MP, and I have continued to support it. I pay tribute to the campaigners in my constituency, including ex-miner Tony Jones, who gave me a badge that I wear with pride. I am grateful to the Minister for her engagement with BCSSS trustees and us as coalfield MPs. However, many of my constituents are often elderly, in poor health and desperate for a resolution. Given that the investment reserve is already held within the scheme and its return would not require any new public spending, will the Minister continue to work hard to ensure that these deferred pensions are rightly returned as quickly as possible to their rightful owners?

That is certainly what we are working to do. Because the two schemes are slightly different, the way the Treasury has to interact and think about these things is slightly different, but we have done this Government Actuary process, and we met the trustees today. We will now put our recommendation to the Chief Secretary to the Treasury—I know that a lot of my hon. Friends are talking to him about this issue whenever they can. While I have a desire to move at speed, I hope colleagues will appreciate that we also need to ensure that we get this absolutely right, and that any spending decisions are carefully considered, especially given the role that the Government have as the guarantor to both the mineworkers’ pension scheme and the BCSSS. I want to assure all hon. Members that I am doing all I can to reach an agreement and improve the conditions for members as soon as possible.

The Minister has been good today, actually, at the Dispatch Box, so I thank her for that. A lot of positive things have come out of this Adjournment debate. I have one question: is the scheme running at a surplus and if so, by how much?

I will not give figures, but the scheme is doing well. That is in part because of the trustees and the actions they have taken, and the investments and process they have undertaken. While the 2015 situation caused there to be a change in the way it was managed, it is now running well, and people can be reassured about that. I recognise that for many in coalfield communities, delivery on the mineworkers’ pension scheme has only heightened the sense of injustice about the BCSSS—I hear and feel that and am determined to take action on it.

For my 719 BCSSS members, with the scheme looking quite healthy now, does the Minister have that oomph to push it forward and expedite it as quickly as possible to get them justice?

I certainly have oomph, yes, and I am working as fast as I can on this. I will not talk now about the wider support that we are offering people in our former coalfield communities, but a whole raft of Government interventions are there to support people.

My constituent Robert Ferguson echoes many of the points made by the constituent of the hon. Member for Ashfield (Lee Anderson) about the difference between families who worked side by side, whereby one benefits and one does not. I know that the Minister has a rather full portfolio—there are many other things that I constantly nag her about—but will we wait for the Treasury, which is not known for its speed in making decisions, or could interim arrangements be put in place to give some of the surplus back to the BCSSS, or something that allows a demonstration of progress while we wait for the Chief Secretary to come to a decision?

I would not want to give the impression that this decision is waiting on the Chief Secretary to the Treasury to say yes. That is not the case. We have to go through the correct processes to get it over the line, because it was not in the manifesto; it is a different scheme and we must go through the proper processes. I hope that my hon. Friend understands that. It would probably cause more trouble than not to give part but not all of the surplus back, because people would wonder why we were doing that. We want to resolve this properly and quickly. The two outcomes that the hon. Member for Ashfield referred to, and which the trustees want, are goals that we all share, but we have to do this properly by going through the right processes and ensuring that we are not putting words into the mouths of our Treasury officials and colleagues before it is right to do so. My commitment is to work at pace on this. As I said, my officials are meeting the Treasury tomorrow, and we are meeting the trustees before the summer.

I have two quick points. First, as the Minister carries out those meetings—I wish her well—will she consider meeting some of us from coalfield communities, to facilitate that conversation? Secondly, she has just touched on the industrial strategy. She knows my views on the BCSSS and its importance to many people in Newcastle-under-Lyme. That industrial strategy must be felt by people not just in Newcastle-under-Lyme but up and down our country, particularly in coalfield communities. As it is finalised, I urge her to give a thought to us—that is really important. I hope that she will find time to meet us soon.

I am always very happy to meet my colleagues, particularly my hon. Friend. I am very happy to meet anybody in receipt of or campaigning on the BCSSS. My door is always open. He is right, of course, that our industrial strategy needs to do something that we have not had for so long: it needs to grow our economy across the country, not just in certain areas. We want the industrial strategy to do just that. I will end by saying that, as politicians, we know that people find it very hard to trust us and what we will deliver, in part because they have been let down so many times over so many years, but I hope that they have noted our delivery of the mineworkers’ pension scheme within three months of coming into office. I understand the frustration and need for speed because the people concerned are getting older. We know that many people passed away before they could get the mineworkers’ pension scheme. The same is true during the long time that we have been talking about these issues. Now, I hope that people can see that we mean it when we look to work at pace on the BCSSS.

I am mindful of the fact that hon. Members do not have to be present at Adjournment debates, but does it not say everything that there is not a single Conservative MP here this evening—although there is a former one—to discuss this issue of importance not just to Newcastle-under-Lyme but to the whole United Kingdom?

I will let anybody watching the debate draw their own conclusions on that front, but it is there for all to see. I thank the hon. Member for Ashfield for securing the debate and many hon. Friends for their representations. The Labour Government are absolutely committed to addressing the BCSSS. I look forward to updating Members on our progress towards improving pensions for all our former miners and correcting these historical injustices. Question put and agreed to.

18:34:00