Thousands of pensioners will be handed £13,393 each starting in November

Miners are set to be handed £13,393 each thanks to a change from the Labour Party government. A historic injustice has been reversed as 112,000 former coalminers finally have £1.5 billion from their pension scheme transferred to them, boosting their pensions by 32%.

Following the announcement in yesterday’s budget, Energy Secretary Ed Miliband confirmed that the move will mean a 32% boost to the annual pensions of 112,000 former mineworkers – an average increase of £29 per week for each member.

In a landmark decision, the fund - now worth £1.5 billion – will be handed over to the pension scheme, ensuring former pit workers who powered the country for decades finally get the just rewards from their labour.

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Mr Miliband 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." Minister for Industry Sarah Jones said: "Miners powered our industries and our homes for decades. That’s why we have to right the wrong that has denied them the decent pension they deserved.

"We are handing over the £1.5 billion that for years has sat in the reserve fund unused at times when people needed it most. This will end an historic injustice and will ensure members of the scheme see an average increase of £29 per week added to their pay – an increase of 32%."

Gary Saunders, Chair of the Trustees of the Mineworker’ Pension Scheme, said: "As a Trustee board we are delighted we will be able to put more money in our members’ pockets. We are also grateful to the many members and MPs who have shown support of the Scheme on this matter over the years."

Steven Hull, partner at UK law firm Burges Salmon, said: “The Mineworkers’ Pension Scheme might be considered an interesting case study on how a surplus can be effectively generated by running on a pension scheme that has a strong employer covenant standing behind it.

“The scheme’s trustees acknowledge that the government guarantee the scheme benefits from has enabled them to pursue a ‘more ambitious’ investment strategy than they would otherwise have been able to. Today’s changes relate to how the surplus will be shared going forwards and are clearly specific to the circumstances and history of this particular scheme.

“We did wonder if the chancellor might look more broadly at surpluses in pension arrangements – with many defined benefit schemes now in surplus, relaxing the rules to allow return of surplus to employers more easily might have generated some healthy tax receipts. But it looks like that is a question for another day.”