Chancellor, Rachel Reeves, has confirmed that the investment reserve fund of the British Coal Staff Superannuation Scheme will be transferred to scheme members, delivering what she described as a “fair deal” for those who worked in the coal industry.

Speaking during her Budget statement in the House of Commons, Reeves said: “I will transfer the investment reserve fund of the British coal staff superannuation scheme to its members, so that the men and the women who worked in our coal industry get a fair deal in their retirement too.”

The move builds on measures introduced last year, when more than 100,000 former mineworkers received the first uplift to their pensions as part of government efforts to reverse what it called a "historic injustice" suffered by members of the Mineworkers' Pension Scheme (MPS).

Nearly 112,000 former mineworkers and dependents saw an average £29 increase in weekly payments after £1.5bn was transferred to the scheme, representing an average 32 per cent rise in annual pensions.

Reeves initially confirmed Labour’s commitment to delivering “justice” for MPS members in the Autumn 2024 Budget, stating her intention to review the “unfair” surplus arrangements and return the investment reserve fund to members.

Today's announcement follows an amendment tabled to the Pension Schemes Bill calling for the transfer, with the government also confirming that the bill will progress to the report stage and third reading on 3 December.

MPS, one of the largest defined benefit (DB) pension schemes in the UK, was closed to future accrual in 1994 following the privatisation of the coal industry.

It now has around 7,000 deferred members and 110,000 pensioners in payment, paying out approximately £700m a year to former mineworkers and their beneficiaries.

The investment reserve fund was established in 1992 using scheme profits to act as a buffer should the MPS fall into deficit.

Under previous arrangements, the fund was due to revert to government ownership in 2029.

The scheme’s trustees hailed last December’s uplift as a “historic milestone” for members, with today’s confirmation marking the latest step in government efforts to address longstanding concerns around the treatment of former mineworkers’ pensions.

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