Martin Whitfield MSP and Douglas Alexander MP have welcomed the UK Labour Budget’s reversal of the historic injustice affecting hundreds of former coalminers in East Lothian.

Across the UK, more than 100,000 former mineworkers will receive £1.5 billion of money that was kept from their pensions – boosting their pensions by nearly a third or £29 a week for each member.

When the Conservative Government privatised British Coal in 1994, it struck a deal that entitled it to half the surplus cash from the pension scheme in return for a guarantee that miners’ pensions would rise in line with inflation.

But the scheme has continued to produce strong returns – meaning the UK government has received £4.8 billion over the last 30 years without paying any funds into it.

Former mineworkers and their families argued for decades that money intended for miners’ retirements should be in former miners’ pockets rather than the government’s coffers.

In a landmark decision, the fund – now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.

The UK Labour government will also review the agreement to ensure former miners and their families get a fairer deal in the years ahead, with next steps set out in the coming months.

Martin Whitfield MSP said:

“Mining and miners were a vital part of the fabric of communities across East Lothian. We owe them a debt of gratitude for the way their hard work powered Scotland and their legacy continues today in our coalfield communities.

“It’s right that the money they had lost out on over the years is back in their pockets where it belongs. This is the direct result of a UK Labour government operating in the service of working people.”

Douglas Alexander MP said:

“It is a national scandal that former miners in this constituency and across Scotland have had to fight for so long for the pension settlement they deserve. Labour has now ended this injustice for members of the Mineworkers’ Pension Scheme and delivered what is rightfully owed back to mining families.

“This is a victory for the relentless campaigning of the trustees, members, and coalfield communities.”