Thousands of former mineworkers will receive an average lump sum of £5,500 and a weekly pension boost of £100 just days before Christmas in a major overhaul. The payout follows the release of a government reserve fund, with £2.3 billion that had been held since 1994 set to be transferrred to members of the British Coal Staff Superannucation Scheme (BCSSS). The increase will land in former mineworkers’ pockets today, Tuesday, December 23, with the lump sum based on backdated payments to November 2024, when a similar increase to the Mineworkers’ Pension Scheme was implemented.

It means a 41% uplift in pension payments for 38,425 members, including former mineworkers and those who worked in non-mining roles at UK collieries, including engineers, administrators, managers and canteen workers. Energy Secretary Ed Miliband said the payments would provide those eligible with “the retirement they deserve” and take the financial pressure off two days before Christmas.

“I want to pay tribute to all the mineworkers and all the campaigners involved in ending this decades-long injustice,” he added.

The BCSSS, one of the UK’s largest occupational pension schemes, was closed in 1994 following the privitisation of the coal industry.

Former miner Stuart Porthouse, from County Durham, told ITV: “We’ve been fighting to try and get recognised.

“And it’s a relief at last, because over the last year we’ve lost a lot of our members. They have gone, but fortunately the government have agreed that they’ll be backpaid into their estate, which is a good thing.”

Cheryl Agius, chair of trustees of the British Coal Staff Superannuation Scheme, said it was a “historic moment”.

“This is … the result of a year of determination, advocacy and collaboration, and it marks a turning point for the scheme,” she continued.

“The government has listened to the trustees, scheme members and Coalfield MPs that have supported this issue, and agreed to transfer the scheme’s investment reserve to members.

“Being able to make the first bonus pension increase today brings BCSSS members into line with their former colleagues in the Mineworkers’ Pension Scheme (MPS), who received their investment reserve in November last year.”