Recommendations & Conclusions
9 items
5
Conclusion
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
The Government has not paid any funds into the Scheme since the surplus sharing arrangement was put in place in 1994. (Paragraph 23) Fairness of the current terms
Government response AI summary
The government's response focuses on defending the fairness of the 1994 agreement and the risks it took on, but does not directly address the committee's specific finding that the government has not paid any funds into the Scheme since 1994.
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Department for Business and Trade
6
Conclusion
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
Many former mineworkers have chronic health issues directly related to their former occupation, and the former coalfields are amongst the most deprived areas of the UK. Sadly, their numbers are also decreasing year by year. Over half of Scheme members receive less than the average pension. Given the success of …
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Many former mineworkers have chronic health issues directly related to their former occupation, and the former coalfields are amongst the most deprived areas of the UK. Sadly, their numbers are also decreasing year by year. Over half of Scheme members receive less than the average pension. Given the success of the Scheme, and the vast sums which have been paid to the Government, it is unconscionable that many of the Scheme’s beneficiaries are struggling to make ends meet.
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Government response AI summary
The government's response defends the fairness of the 1994 pension agreement and the Trustees' autonomy, but does not address the committee's concerns about the chronic health issues and financial struggles faced by former mineworkers.
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Department for Business and Trade
8
Conclusion
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
Given that the Scheme has continued to produce strong returns despite the 2008 Financial Crisis and the COVID-19 pandemic, there is little reason to believe the Government will be required to pay into the Scheme before it is wound-up. Even if, in extremis, the Government is required to financially contribute …
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Given that the Scheme has continued to produce strong returns despite the 2008 Financial Crisis and the COVID-19 pandemic, there is little reason to believe the Government will be required to pay into the Scheme before it is wound-up. Even if, in extremis, the Government is required to financially contribute at some point in the future, realistically its contribution will not come close to the (at least) £6.3bn it is currently due to receive in total.
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Government response AI summary
The government response consists only of a title and does not address the committee's conclusion regarding the Mineworkers’ Pension Scheme's financial health and the likelihood of government contributions.
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Department for Business and Trade
9
Conclusion
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
Whether or not the Government knew in 1994 that it would disproportionately benefit from the arrangement, and whether all parties thought it was fair at the time, 24 Mineworkers’ Pension Scheme is irrelevant. It is patently clear today that the arrangements have unduly benefited the Government, and it is untenable …
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Whether or not the Government knew in 1994 that it would disproportionately benefit from the arrangement, and whether all parties thought it was fair at the time, 24 Mineworkers’ Pension Scheme is irrelevant. It is patently clear today that the arrangements have unduly benefited the Government, and it is untenable for the Government to continue to argue that the arrangements remain fair.
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Government response AI summary
The government acknowledges the historical context of miners' conditions and compensation but fails to address the conclusion that the 1994 pension arrangements have unduly benefited the government and are now untenable.
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Department for Business and Trade
10
Conclusion
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
Governments should not be in the business of profiting from mineworkers’ pensions. We are therefore disappointed by the Government’s argument that the 1994 agreement is a success because the public purse has had strong returns from it. The Government is not a corporate entity driven by profit-motives, and should not …
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Governments should not be in the business of profiting from mineworkers’ pensions. We are therefore disappointed by the Government’s argument that the 1994 agreement is a success because the public purse has had strong returns from it. The Government is not a corporate entity driven by profit-motives, and should not view miners’ pensions as an opportunity to derive income. We also note that allowing the arrangement to continue would appear antithetical to the Government’s stated aim of redressing socio-economic inequality and ‘levelling up’ left-behind communities. (Paragraph 49) Changing the terms of the 1994 agreement
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Government response AI summary
The government acknowledges the historical context of miners' conditions and compensation but does not address the conclusion that it should not profit from mineworkers' pensions or that the current arrangements conflict with levelling up goals.
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Department for Business and Trade
11
Recommendation
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
The Government is disingenuous in claiming the Trustees are content with the terms of the current arrangements. The Trustees have been clear that they are not - and never were - happy with the terms, and that they would welcome any changes in members’ favours. The Government should not mistake …
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The Government is disingenuous in claiming the Trustees are content with the terms of the current arrangements. The Trustees have been clear that they are not - and never were - happy with the terms, and that they would welcome any changes in members’ favours. The Government should not mistake the Trustees’ acceptance of the deal for contentment.
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Government response AI summary
The government acknowledges the historical conditions and its compensation for former miners, but does not address the committee's recommendation regarding the government's claims about the Trustees' contentment with the pension arrangements.
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Department for Business and Trade
12
Recommendation
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
We are disappointed by the Government’s dismissive approach to proposals to review the existing arrangement. The Minister’s claim of openness is contrary to the approach successive governments have taken since 1994. The Government must approach any future discussions with the Trustees with a genuinely open mind, and with the best …
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We are disappointed by the Government’s dismissive approach to proposals to review the existing arrangement. The Minister’s claim of openness is contrary to the approach successive governments have taken since 1994. The Government must approach any future discussions with the Trustees with a genuinely open mind, and with the best interests of the pension members in mind.
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Government response AI summary
The government did not address the recommendation about approaching future discussions with an open mind, instead acknowledging the harsh conditions miners faced and past compensation efforts for health issues.
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Department for Business and Trade
13
Recommendation
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
With the benefit of hindsight, it is clear that the Government has already profited greatly from the Scheme. The Government must acknowledge that continuation of the arrangements in their current form deserves a review and a better outcome for pensions should be found. The current arrangements should be replaced with …
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With the benefit of hindsight, it is clear that the Government has already profited greatly from the Scheme. The Government must acknowledge that continuation of the arrangements in their current form deserves a review and a better outcome for pensions should be found. The current arrangements should be replaced with a revised agreement in which the Government is only entitled to a share of surpluses if the Scheme falls into deficit, and the Government has to provide funds. In that event, the Government should be entitled to 50% of future surpluses up to the total value of the funds it has provided to make up any shortfall. Such an arrangement takes account of the vast funds the Government has received thus far and the significant reduction in the risk it faces, and would ensure that neither party will be out of pocket in future.
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Government response AI summary
The government acknowledges the historical context of coal miners' conditions and its compensation efforts but does not address the recommendation to review or replace the current pension arrangements.
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Department for Business and Trade
18
Recommendation
Sixth Report - Mineworkers’ Pension Sch…
Not Addressed
Our recommendations set out equitable arrangements which would go some way to redressing the sense of historic injustice felt by the Scheme’s members. The Government must consider them carefully. (Paragraph 67) 26 Mineworkers’ Pension Scheme
Government response AI summary
The government did not address the recommendation to carefully consider the committee's proposed equitable arrangements, instead referencing the Trustees' past preference to retain the guarantee and prioritising bonus protection.
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Department for Business and Trade