AN ARRANGEMENT through which 50 per cent of profits made by a mineworkers' pension scheme are handed to the Treasury has been branded "an injustice".

The agreement around the Mineworkers' Pension Scheme has made £3.4 million for the UK Government since it was signed in 1994.

But many, including Blaenau Gwent MP Nick Smith, have said the deal is unfair and should be reviewed.

Speaking during Prime Minister's Questions yesterday, Wednesday, the Labour MP said: "Members of my family were either killed or badly injured working in the coal mines of the south Wales valleys.

"We owe all of our miners a debt of gratitude, yet in recent years the Treasury has raked in billions of pounds from their pension schemes, so will the chancellor meet me, retired miners and coalfield community MPs to fix this injustice?"

Responding, Cabinet Office minister David Lidington, standing in for Theresa May, said: "We certainly recognise the hard work and incredible risks that miners took in the honourable gentleman’s constituency and many others.

"The important thing about the miners’ pension scheme is that it should pay out all the promised benefits in full. My understanding is that the scheme is funded to do just that and that no former miner will lose out."

Speaking outside Parliament, Mr Smith said: “No one is arguing that the government’s role of guarantor has not been an important one. It has brought security and peace of mind for years.

“But mining was one of the bedrocks of industry for this country and this government must recognise the huge sums they have made off this fund. Miners don’t just deserve words of acknowledgement for their sacrifices, but real action.”