THE government has been accused of pursuing a “vendetta” against retired mineworkers by rejecting MPs’ calls to stop milking their pensions under a scheme which has paid the Treasury £6 billion.

The Business, Energy and Industrial Strategy Committee (BEIS) carried out a review of a government-imposed arrangement with the mineworkers’ pension fund to tackle what it called a “historic injustice” against former miners.

Following the privatisation of the coal mining industry in 1994, the government said it would guarantee the miners’ pensions against any future losses. 

In return the fund had to give the government 50 per cent of any surpluses made.

But in the 26 years since then there have been no losses and the deal has not cost the government a penny. But it has siphoned off more than £6bn in surpluses — with more to come.

In addition to recommending the ending of the arrangement, the Commons committee called for an immediate payment to the pensioners of £1.2bn currently held in pensions reserves.

The government has refused and said the money will go to the Treasury.

Meanwhile some retired miners — many suffering chronic ill-health due to their work — receive a pension of less than £10 a week.

National Union of Mineworkers (NUM) general secretary Chris Kitchen said his response to the government’s decision was one of “anger.”

“Since I joined the industry in 1982 the Conservative Party has pursued a vendetta against miners, and this response to what was cross-party support to change this appalling arrangement shows that they are intent on continuing this until we are in our graves,” he said.

“Retired miners live in deprived communities. They are suffering with health conditions caused by working at the pit.

“After working down the pit all those years they deserve a decent retirement. Money will not make their health better, but it will make their lives a bit more bearable.”

Labour MP Darren Jones, who chairs the BEIS committee, accused the government of “intransigence” and said its decision was “a slap in the face” for retired miners.

“The government has benefited from billions of pounds of surpluses since 1994 without having to contribute a pound of taxpayers’ money to miners’ pensions,” he said.

A government spokesman said: “Mineworkers’ Pension Scheme members are receiving payments 33 per cent higher than they would have been thanks to the government’s guarantee.”