The UK government has pledged to give members of the Mineworkers’ Pension Scheme (MPS) and the British Coal Staff Superannuation Scheme (BCSSS) 100% of the surpluses generated by the pension funds, ending arrangements under which it was entitled to a share.
Delivering his first Budget as chancellor of the exchequer, John Healey said: “For ex-mine workers, I’m guaranteeing that every penny of the pension fund surplus now goes to miners.”
Healey acknowledged that further work remained, promising to “ensure the full transfer of the guarantor’s fund”.
Accompanying budget documents confirmed that the government would change the surplus-sharing arrangements for the two schemes so that members receive the entirety of the surpluses generated by their investment performance.
The government also confirmed it would work with the schemes’ trustees towards the full transfer of the remaining Guarantor’s Fund.
In last year’s Budget, former chancellor Rachel Reeves announced that the government would return surplus assets to the BCSSS, but the transfer covered only part of the fund’s surplus.
The BCSSS held approximately £7.7bn (€9.2bn) in assets as at 31 March 2026.
At the time, the government confirmed that it would transfer the scheme’s Investment Reserve Fund to its trustees for distribution to members as additional pension benefits. The transfer amounted to £1.97bn.
The pension fund was established in 1947. Following the privatisation of the coal industry in 1994, the government became its guarantor.
Under the arrangements, the government was entitled to half of any surplus, although no payments have been made to it since 2015, when the agreement ended.
According to a parliamentary briefing, the government received £4.8bn from the MPS and £3.1bn from the BCSSS between October 1994 and July 2024.
The BCSSS has approximately 40,000 members, including up to 5,000 women and widows of former miners.
The government has previously announced a similar transfer for the MPS, releasing its Investment Reserve Fund to pensioners. The transfer amounted to £1.5bn and resulted in an average weekly pension increase of £29 for members.
The MPS Investment Reserve Fund was established in 1992 using scheme profits to provide a buffer against a potential deficit. The money had been due to be returned to the government in 2029.
