Concern over impact of UK Coal collapse on pensioners

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A South Yorkshire MP is calling for the Government to ‘minimise’ the impact of the collapse of UK Coal on retired miners.

The company, which took over the remnants of the state-owned British Coal, was forced into administration last month.

A large underground fire at its Daw Mill pit in Warwickshire had compounded existing financial pressures to breaking point.

Michael Dugher, Labour MP for Barnsley East, has written to energy minister Michael Fallon ‘to seek clarifications over the implications of UK Coal entering administration’.

Accountant Pricewaterhouse Coopers has been brought in as administrators and UK Coal was restructured to form a new company called UK Coal Production.

Mr Dugher revealed he has since been contacted by constituents with concerns.

He said: “There is still a lot of confusion over the effect this will have on peoples’ pensions and concessionary fuel entitlement.

“The latter being something that many people rely on to heat their homes, including miners’ widows, and its loss would hit them hard.

“It has also been reported that members of the pension scheme are facing a 10 per cent cut in their pension entitlement.

“Confusion is causing worry and I have urged the minister and the Government to do all they can to address this and to minimise any financial impact.”