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What the latest Budget announcement means for MPS members

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5 January 2026

 

In the Budget, the Chancellor confirmed that money held in the BCSSS investment reserve will be transferred to BCSSS members. It will be used to provide them with an additional protected bonus pension.

 

What this means for MPS members

 

The MPS Trustees are pleased for BCSSS members. However, they are disappointed that the Government did not use the Budget to announce the outcome of its review of surplus sharing in the MPS. This review was a manifesto commitment.

 

What the Trustees proposed last December

 

In December 2024, the MPS Trustees wrote to the Department for Energy and Net Zero (DESNZ). They proposed that:

  • 100% of any future surpluses should go to members as bonus pensions, as long as the Scheme is not in deficit
  • around £1 billion, previously earmarked to be returned to the Government from earlier surpluses, should instead be kept in the Scheme to provide extra bonus pensions for members
  • bonus pensions paid in 2024 should be protected from any future reductions, even if the Scheme later moves into deficit

Why protection of bonus pensions matters

 

The Trustees have made clear that protecting MPS members’ 2024 bonus pensions is vital. They have stressed that members earned these pensions, and they should not be taken away in future.

 

What the BCSSS decision means for MPS

 

The Trustees understand that the bonus pension awarded to BCSSS members in this year’s Budget is protected from future reductions.

 

As a result, the MPS Trustees expect the Government to offer the same protection to MPS members.

 

What happens next

 

The Trustees will meet with the Minister for Industry, Chris McDonald MP, who is responsible for miners’ pensions, in February. They will ask the Minister to support their proposals.

 

How members can show support

 

If you support the Trustees’ proposals and want your 2024 bonus pension protected by a Government guarantee, you may wish to write to the Minister for Industry, copying in your local MP.

 

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