Minister for industry commits to fixing British Coal surplus ‘injustice’

The minister met with the scheme trustees on 22 April to discuss the scheme’s £2.3bn investment reserve. The trustees are demanding that members receive this reserve “as soon as possible this year”, and are also seeking a review on how any future surplus will be shared.

The surplus-sharing arrangement for the scheme ended in 2015, but an investment reserve fund still exists and any changes to how this is used – including distributing to members – have to be agreed by the government, as the official guarantor of the pension scheme. 

An initial meeting between Jones and the trustees took place in December 2024. The trustees voiced their disappointment at the delay between these two sets of talks. A follow-up meeting with Jones has been scheduled for early June, after which her team will complete a proposal to be sent to the Treasury.

“The minister pledged to resolve the BCSSS investment reserve injustice and to act as quickly as possible in the coming months,” the BCSSS said in an update on April 25.

“However, she explained that proper government procedures must be followed, which requires HM Treasury’s approval to return the reserve.” 

The trustees added that they have not received any guarantees “that the full investment reserve will be returned”. 

A Department for Energy Security and Net Zero spokesperson said: “Following a meeting between ministers and trustees of the British Coal Staff Superannuation Scheme, Minister Jones outlined the government’s commitment to a review of the scheme’s arrangements.

“As the minister expressed in the meeting, we will continue to work with trustees on this.”

A separate government review is underway on sharing the Mineworkers’ Pension Scheme surplus with members.

In October 2024, chancellor Rachel Reeves used her Budget statement to confirm that the government would transfer the mineworkers’ scheme’s Investment Reserve Fund to the trustees to be distributed to members.