South Scotland Labour List MSP, Colin Smyth, has welcomed the UK Labour Budget which reversed the ‘historic injustice’ affecting Ayrshire’s former coalminers.
Across the UK, more than 100,000 former mineworkers will receive £1.5 billion of money that was kept from their pensions– boosting their pensions by nearly a third or £29 a week for each member.
When the Conservative Government privatised British Coal in 1994, it struck a deal that entitled it to half the surplus cash from the pension scheme in return for a guarantee that miners’ pensions would rise in line with inflation.
But the scheme has continued to produce strong returns – meaning the UK government has received £4.8 billion over the last 30 years without paying any funds into it.
Former mineworkers and their families argued for decades that money intended for miners’ retirements should be in former miners’ pockets rather than the government’s coffers.
In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.
The UK Labour government will also review the agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months.
MSP Colin Smyth said: “I’m immensely proud to represent a region truly steeped in Scotland’s mining history.
“On the west coast in Ayrshire, at one time 14,000 coal miners mined 4 million tonnes of coal annually – and a certain Keir Hardie founded the Ayrshire Miners Union that led to the National Union of Scottish Mineworkers.
“I very much welcome this landmark decision. It’s right that the money is back in the pockets where it belongs.
“This is the direct result of a UK Labour government in the service of working people with Scottish MPs at its heart.”
Scottish Labour Leader, Anas Sarwar, said: “For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.
“Now that scandal ends, and the money is rightfully transferred to the miners.”
Energy Secretary Ed Miliband said: “We owe the mining communities who powered this country a debt of gratitude.
“I pay tribute to the campaigners who have fought for justice- today is their victory.”