REDUNDANT MINEWORKERS AND CONCESSIONARY COAL (Hansard, 17 June 1980)

§ The Under-Secretary of State for Energy (Mr. John Moore)

I beg to move, That the draft Redundant Mineworkers and Concessionary Coal (Payments Schemes) (Amendment No. 2) Order 1980, which was laid before this House on 19 May, be approved. My right hon. Friend the Secretary of State has already told the House of the improvements in social grants that are being provided for in the Coal Industry Bill, and he mentioned that we have also reviewed the level of redundancy payments. This order is the result.

Under section 7 of the Coal Industry Act 1977, the Secretary of State can make a scheme for payments to men made redundant at coal mines and certain prescribed places. The current scheme is set out in the schedule to the Redundant Mineworkers and Concessionary Coal (Payments Schemes) Order 1978.

Men over 55 get approximately two-thirds of their previous pay for three years, and after that, until they are 65, weekly payments equivalent to the current rate of unemployment benefit plus their mine workers' pension, now £7.37 per week. We think that this is an entirely reasonable provision and do not propose to change it.

However, for men under 55 the arrangements have remained unchanged since 1973. Men under 35 do not get anything. Between 38 and 54 they get a lump sum of £50 for each year of service with a maximum of £1,250. There is a sliding scale for those between 35 and 38. We think it is high time that these payments were improved and we propose therefore 1484 that for each year of service after age 20 men between the ages of 21 and 34 should get half a week's pay, those between ages 35 and 44 one week's pay, and those between ages 45 and 54 one and a half week's pay. The latter also applies to men over 55 with less service than the 10 years needed to qualify for weekly benefit. Obviously the new arrangement will vary according to the earnings of the men concerned, but for the average miner at present one and a half week's pay would be about £190. It would thus give a man of 50 with 30 years' service £5,700.

The cost will be about £9 million a year at 1980 survey prices. It will require an equivalent reduction in the NCB's net borrowing from the Government and hence in the total figure for external finance.

The changes in lump sum benefits will be brought into effect by the order. I hope that the House will find these proposals equitable and timely and will be prepared to approve the order.