Sarah Champion MP Welcomes Government Agreement to Review British Coal Staff Superannuation Scheme

Sarah Champion MP Welcomes Government Agreement to Review British Coal Staff Superannuation Scheme

Sarah Champion, Member of Parliament for Rotherham has welcomed the Government’s commitment to review pension arrangements for the British Coal Staff Superannuation Scheme (BCSSS).

After Sarah repeatedly raised the scheme with Ministers, the Government has agreed to “review any proposals set out by the Trustees” of the BCSSS. i

In the recent Budget, the Government announced that it would fulfil its manifesto commitment to transfer the Investment Reserve Fund back to the Mineworkers Pension Scheme (MPS) and to review surplus sharing agreements. The change will result in an average of £29 per week increase in pension payments to members of the MPS. No such announcement was made for the MPS’ sister scheme, the BCSSS.

Following the announcement this week, Sarah said:

“The transfer of reserve funds from the Government to the MPS is a huge victory for the 900 members of the scheme in my constituency. It ends a historic injustice, and I am delighted that the Government has fulfilled its manifesto pledge to them so quickly.’

‘I was, however, concerned that members of the comparable BCSSS were not included in the announcement. I immediately raised this discrepancy with the Government, and I am delighted that they have listened to me and agreed to review the scheme.”

Following the Budget, Sarah wrote to the Secretary of State for Energy Security and Net Zero, Ed Miliband, urging him to review arrangements for the BCSSS. During Business Questions in the House of Commons, Sarah again urged the Government to review the BCSSS, saying:

“If anyone wants evidence of what a Labour Government can do, they need look no further than the Mineworkers’ Pension Scheme. Within weeks of coming into office, the scheme got £1.5 billion returned, which has made a huge difference to nearly

1,000 of my constituents. Yet the British coal staff superannuation scheme, which is subject to similar arrangements, has not seen any such return of funds.”ii

During privatisation, the then Conservative Government agreed to act as a guarantor for both the MPS and BCSSS. In return, surpluses generated by the schemes would be shared between the Government and scheme members. Surpluses accrued to that point were also divided between the Government and the schemes, with the Government’s portion used to establish Investment Reserve Funds. These arrangements have seen the Government receive several billion pounds without ever having to contribute a single penny.

While surplus sharing for the BCSSS ended in 2015, the Government still holds a £2.3bn investment reserve fund, which the scheme’s Trustees have requested be returned, in line with the agreement for the MPS.iii

ENDS
Notes to Editors:

i https://www.bbc.co.uk/news/articles/c3wqg9e08qjo
ii https://www.facebook.com/sarahforrotherham/videos/1106186591061045/
iii https://www.bcsss-pension.org.uk/news/we-ve-asked-the-government-to-transfer-the-bcsss-investment- reserve-to-members/