Budget 2024: Rachel Reeves outlines approach to pensions

       Thousands of people will be handed a ￡13,000 pension boost each this November thanks to a government review.

       Labour has said that 112,000 former mineworkers will receive ￡1.5 billion of money that was kept from their pensions unfairly.

       The move will provide a 32% increase to the annual pension pot of former miners, granting them around ￡13,392 each- an average increase of ￡29 per week for each member.

       An investment reverse fund was set up using profits from the Mineworkers’ Pension Scheme in 1992, to provide a buffer in case it went into deficit, and this money was due to be returned to government in 2029.

       But the fund, which is now worth ￡1.5 billion, will instead be handed over to the pension scheme, a move Labour says will overturn an “historic injustice” and ensure fair payouts for former pit workers for years to come.

       Read More: Raging Martin Lewis slams Rachel Reeves' 'simply not true' state pension claims

       112,000 former mineworkers will receive ￡1.5 billion of money that was kept from their pensions (Image: Getty)

       Energy Secretary Ed Miliband said: “We owe the mining communities who powered this country a debt of gratitude.

       “For decades, it has been a scandal that the government has taken money that could have been passed to the miners and their families.

       “Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice, today is their victory.”

       The trustees are responsible for deciding how the ￡1.5 billion fund is distributed amongst their 112,000 members and will deliver the bonus into pension pay packets from November this year.

       Allen Young, Pensioner Representative Trustee for the North East of England and Overseas members, said: “The government’s decision to make good on this part of its manifesto commitment in respect of the Scheme is a very positive development for our members.

       “The Trustees will use the Investment Reserve to increase our members’ pensions and we will be writing to all members with the good news very shortly.”

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       When British Coal was privatised in 1994, the government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.

       The government has said it will deliver on its commitment to review this agreement to ensure former miners and their families get a fairer deal in the years ahead.