Source · Select Committees · Business and Trade Committee
Recommendation 13
13
Not Addressed
Paragraph: 58
With the benefit of hindsight, it is clear that the Government has already profited greatly...
Recommendation
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.
Government response summary AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
58
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
22. The Trustees have been clear that they would prefer to retain the guarantee rather than take 100% of future surpluses. In the changes to the Scheme that they suggested in 2019, which were agreed by the Government, they prioritised the protection of bonuses that had accrued over changing the surplus sharing arrangements.
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