Hundreds of former Wigan borough colliers and their families are celebrating after the Government “ended the injustice” surrounding the Mineworkers’ Pension Scheme.

A total of 561 ex-miners and their loved ones in Makerfield, 538 in Leigh and Atherton and 378 in Wigan have finally had the investment reserve from their pension scheme transferred to them, boosting their pensions by an average of 32 per cent

The new Labour government said it had delivered on a longstanding campaign plea from ex-pit workers, alongside a new review to ensure mineworkers receive a fair pension for years to come too.

Makerfield MP Josh Simons welcomed the announcement.

placeholder image — Josh Simons has welcomed the move

Rolling back the years: pictures of Wigan people and events in 1952

He said: “It is a national scandal that former miners across the towns of Makerfield have had to fight for so long for the pension settlement they deserve.

"Today, Labour ends this injustice and delivers what is rightfully owed back to mining families.

"This is a victory for the relentless campaigning of the trustees, members, and coalfield communities here in Makerfield.”

The investment reserve fund was set up using profits from the scheme in 1992, to provide a buffer in case the Mineworkers’ Pension Scheme went into deficit. This money was due to be returned to government in 2029.

Former mineworkers and their families have fought to retrieve that money for many years.

In a landmark decision, the fund - now worth £1.5bn – will be handed over to the pension scheme, Mr Simons saying that it ensured former pit workers who powered the country for decades finally get the just rewards for their labour.

When British Coal was privatised in 1994, the Government also agreed to take half of any profits generated by the pension scheme, in return for a guarantee that pensions would increase in line with inflation.

The scheme has continued to produce strong returns and the Government has never paid any funds into it.

The Government is now fulfilling a promise to review this 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.

Trustees are responsible for deciding how the £1.5bn fund is distributed among their 112,000 members and are now working to deliver the bonus into pension pay packets from this month onwardsr.

Following the announcement in the recent Budget, Energy Secretary Ed Miliband confirmed that the move will mean a 32 per cent boost to the annual pensions of 112,000 former mineworkers across the UK – an average increase of £29 per week for each member.

He said: “We owe the mining communities who powered this country a debt of gratitude.

"For decades, it has been a scandal that the Government has taken money that could have been passed to the miners and their families.

"Today, that scandal ends, and the money is rightfully transferred to the miners. I pay tribute to the campaigners who have fought for justice- today is their victory.”

Chris Kitchen, General Secretary of the NUM said: “The Labour Party recognised the injustice of the Mineworkers’ Pension Scheme whilst in opposition.

"Now in Government they have made good on their manifesto commitment to return the Investment Reserve Fund so it can be used to increase pensions.

“This is the change we voted for.”