HC Deb 13 July 1965 vol 716 cc268-9
12. Mr. Woof

asked the Minister of Power what recent requests he has received for approval of increased pensions under the Mineworkers' Pension Scheme.

Mr. John Morris

None, Sir.

Mr. Woof

Could my hon. Friend say whether or not his right hon. Friend still has the authority to approve such pension increases and, further, would he confirm or deny recent Press reports that the aged miners' pension funds amounts to no less than £79,412,000? If this is correct, could he explain factors as to why such a sum cannot be used to raise the general level of the aged mineworkers' pensions?

Mr. Morris

On the first part of my hon. Friend's supplementary question, the scheme is administered by representatives of the Board and the N.U.M. The levels of contributions and benefits are fixed by the scheme and any amendments, including increases, are approved by the Minister, but the initiative for any changes comes from the industry. On the second part, the scheme has to be actuarially sound and the total of funds available—I confirm that it is £79 million—is the amount necessary to meet current and future demands for benefits.

Mr. David Griffiths

Is it not time for a more constructive consideration of this matter? The fund now amounts to £79 million. I can remember the time when it was more than £90 million. I do not know where the difference of nearly £20 million has gone, but it has not gone on increased pensions.

Mr. Morris

As I told my hon. Friend the Member for Blaydon (Mr. Woof), I have received no representations about the scheme. Secondly, the scheme has to be actuarially sound and pensions are bound to be small as yet because the scheme is still, relatively, in its infancy. However, the Board granted free back-service credits to augment pensions and a minimum pension of £1 a week has been introduced. As years pass, members qualify for higher pensions up to a maximum of about £3 a week.

Sir C. Osborne

Is it possible to increase these pensions without increasing the price of coal? In view of Lord Robens' statement only last week that the coal mining industry would price itself out of existence completely unless coal was reduced in price, is it not impossible to increase these charges?

Mr. Morris

As the hon. Member is aware, the scheme has to be actuarially sound and the levels of contributions and benefits are fixed by the scheme.

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