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UK Budget Returns £2.3bn Coal Staff Pension Reserve to Members

Ministers describe the change as pension justice following years of coalfield lobbying.

Overview

  • Chancellor Rachel Reeves confirmed the transfer of the British Coal Staff Superannuation Scheme’s £2.3bn investment reserve to its members in the Budget.
  • The Government approved a new bonus pension equal to 41% of each member’s guaranteed pension, backdated to 1 November 2024.
  • Enhanced payments and backdated lump sums will start as soon as processing allows, with delivery expected no later than Christmas 2025.
  • Roughly 40,000 members, including many women and widows, will benefit, with reported counts such as 738 in Easington, about 800 across North Staffordshire including 238 in Newcastle-under-Lyme, 120 in Jarrow and Gateshead East, and nearly 200 in Ayrshire.
  • The move reverses a post‑privatisation arrangement that routed surpluses to the Treasury, which received £3.1bn from 1995–2015 with £1.87bn due in 2023, and brings BCSSS into line with last year’s Mineworkers’ Pension Scheme change.