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Welsh ex-miners welcome Budget pension payout

Getty Images Coal miners Phillip Jenkins (left) and Chris Lee sitting next to each other on road railings at the Taff Merthyr Colliery in south Wales in 1983Getty Images
Miners were once integral to the Welsh economy, such as these at Taff Merthyr Colliery near Trelewis in Merthyr county, photographed in 1983

About 112,000 former coalminers are set to receive a pension scheme pay-out after years of campaigning.

Chancellor Rachel Reeves confirmed in her first Budget that ex-miners will receive a total of £1.5bn, about 32% of each member’s guaranteed pension, that has been kept from their pensions since the privatisation of British Coal in 1994.

It comes alongside a review to ensure mineworkers receive what Labour called a "fair pension".

Gareth Jones, who formerly worked at Lady Windsor Colliery, Ynysybwl, in Rhondda Cynon Taf, said miners had for many years "cried out for this money to be distributed at a fairer proportion".

"I am glad at last a government has listened to what the people have said," he said.

Garry Owen, 65, from the Swansea valley, who worked underground for more than 30 years, said: “After many years of fighting for this injustice to be sorted out, I am very pleased that it has finally been resolved."

Campaigners and ex-miners said it came after what they called many years of "fighting for this injustice to be sorted out".

The pension scheme affects tens of thousands of families in former mining areas such as south Wales, the east Midlands, Yorkshire, and north east England.

From the pension scheme, the government is entitled to half the surplus cash in return for guaranteeing its cash value, under an agreement signed 30 years ago.

But in March, the BBC revealed more than £420m had been obtained by the government in the past three years.

The previous Conservative government had said the scheme was fair and beneficial but former mineworkers and their families have continued to campaign.

Contributor photo Garry Owen, bare-chested and smiling, down a coal pit with a helmet and torchlight on his head. Contributor photo
"I am very pleased that it has finally been resolved," says former miner Garry Owen, who worked underground for 30 years

Energy Secretary Ed Miliband said mineworkers had "powered our country” and declared an end to what had been called a scandal.

Miliband also praised the campaigners who "fought for justice", adding that "today is their victory."

Nick Smith, Labour MP for Blaenau Gwent and Rhymney, who has long campaigned on the issue, said the announcement will make a big difference to many people.

“I come from a family of mineworkers. I know how important it is to put this right. This is why I’ve campaigned for so long on this issue," he added.