28 October 2026
In the Autumn Budget today, the Labour Government confirmed that, if a future valuation shows a surplus in the Scheme, 100% of it can be used to increase members’ pensions. This ends the 50/50 surplus-sharing arrangement that has been in place since 1994.
The Trustees are disappointed that, in the hours before today’s Budget, the Government told the Trustees it would not implement the other key proposals the Trustees had put forward.
A deal had been ready to sign with Blair McDougall MP, the Minister responsible for the MPS. Then, in a meeting yesterday, the Labour Government told the Trustees that it would not allow them to use the £1 billion of undistributed surplus currently locked up in the Scheme to pay members a new bonus pension this year.
At that stage, the Labour Government also said it would not fully protect all existing and future bonus pensions.
The Labour Government told the Trustees this decision was driven by its accounting rules. However, those same rules allowed it to transfer £2.3 billion back to BCSSS members last year, whose pensions are higher than those of MPS members.
The Trustees, Labour Coalfield MPs, and other MPS stakeholders asked the Labour Government to change its mind and honour the original deal.
Following a further meeting this morning with Blair McDougall MP, he confirmed that bonus pensions paid since 2024, and any future bonuses, will be protected and can't be taken away – ‘standstill’ has been abolished. The Trustees are grateful for his support and other Labour Coalfield MPs in helping to secure this late change.
But the Government has still not agreed to transfer the undistributed surplus funds to members immediately. These funds will stay unused in the Scheme and no bonus pension will be paid this year.
What the Chancellor has said today is that the Government will ‘ensure the full transfer’ of the undistributed surpluses to members.
The Trustees are cautious that this is not a guarantee to either do this, or a commitment to a specific timescale.
The Trustees' position is that the work has been done and that the undistributed surplus funds should be transferred to members now without further delay. The Trustees feel strongly that, once again, MPS members are not being treated equally and are receiving a second-class deal.
The Trustees will update members in more detail at face-to-face meetings over the coming weeks (see Come along to a member meeting this autumn - mps-pension.org.uk if you would like to attend).
They will also provide further information on the website and in the Autumn newsletter, including what the announcement means for members and the next steps the Trustees intend to take.
The Trustees would also like to thank all the member groups and individual members that have campaigned to get to this point.