Mineworkers (Redundancy Benefit) (Hansard, 24 May 1973)

§ Mr. Tom Boardman

Following consultations with the unions representing the men concerned and with the National Coal Board, I propose to present to the House for its approval a draft of a new Redundant Mineworkers Payments Scheme Order, under the powers conferred by the Coal Industry Acts. The main features of the draft order, applying to redundancies starting on or after 11th December 1972, will be:—1. For men aged 35 and over but under 55, and older men with less than 10 years' service, a lump-sum benefit. The basis will be that for each year of service from age 20 a lump sum of £5 for men of 35, increasing by increments of £5 for each addition of four months in age at redundancy to a maximum of £50 for each such year of service at 38 and above, subject to a limit of 25 reckonable years, and to at least two years' service immediately before redundancy. For example, a man of 45 with continuous service from age 20 will receive a lump sum of £1,250 in addition to his lump sum under the Redundancy Payments Act. On the basis of £30 per week earnings his Redundancy Payments Act lump sum would be £660, making a total payment of £1,910. 2. For men aged 55 and over, with at least 10 years' service, a weekly benefit for three years, or to age 65 if earlier, on the same basis as in the current scheme of 1972, which provides an income of about 90 per cent. of pre-redundancy earnings after tax and other compulsory deductions; and during any period between the expiry of the three years and age 65 a new continued weekly benefit at the rate of unemployment benefit current at the time of payment and additional to mineworkers pension paid prematurely at the new increased rate of £3 a week. For example, a married man with no dependent children, with pre-redundancy earnings of £30 per week would 162W receive £21.42 per week for three years, taking into account other State benefits. At the end of three years, if still under age 65, he would receive £13.90 per week made up of £10.90 benefit at the current rate of unemployment benefit plus £3 premature pension. Continuous availability for employment and surrender of the unemployment benefit equivalent, but not the premature pension, during a period of re-employment, will be conditions of the continued benefit. Men who qualified for benefit at any time from the inception of the original State scheme in 1967 will qualify for this continued payment in future if they have exhausted their three-year period and are still below the age of 65. 3. At present men who find alternative employment during their first three years are allowed to retain up to £6 a week of their redundancy benefit: this is to be increased to £8 a week. 4. The minimum age for entitlement to concessionary coal will be reduced from 60 to 55 at date of redundancy. This particular provision will apply to management and other non-industrial grades as well as to mineworkers and under officials, and to men already in benefit on 11th December 1972. 5. All these benefits will be additional to payments under the Redundancy Payments Act. Additionally, there will be contributions under the Coal Industry Act 1973 towards the costs of increasing all pensions paid after retirement age to the new higher rate of £3.