To ask Her Majesty’s Government whether they have any liability in respect of employees and pensioners of UK Coal who previously served in the nationalised coal industry; what UK Coal paid annually to the Pension Protection Fund (PPF); whether PPF's latest accounts show a surplus, and, if so, how much; whether there are plans to increase the levy to meet new liabilities; and how PPF intends to operate any coal mines that come with UK Coal's pension scheme.

When the British Coal Corporation was privatised in 1994 its two large occupational pension schemes were closed to further contributions and, since that time, Her Majesty’s Government has provided them with solvency guarantees which safeguard the accrued rights of members up to the point of privatisation.

Corporation employees who transferred to private sector employers including, what is now, UK Coal were given the right to join newly established “industry-wide” pension schemes. These schemes stand alone and Government has never had a direct locus in their respect.

The levy paid by an individual scheme for the Pension Protection Fund (PPF) is a matter between that scheme and the PPF. The scheme receives a levy invoice each year. As this information is confidential, it would not be appropriate for me to disclose it. However, the noble Lord may wish to contact the pension scheme directly.

The PPF’s annual report and accounts for 2011/12 show the Fund had total assets of £17,271 million and total liabilities of £16,206 million, providing a reserve of £1,065 million. This figure should be seen in the context of the PPF’s objective to be financially self-sufficient by 2030 and the more challenging environment for pension schemes as a whole.

The pension protection levy estimate for 2013/14 is £630 million. The Board of the PPF will be consulting on the levy for 2014/15 in the autumn.

UK Coal is being restructured and the relevant sections of the industry wide pension schemes are expected to enter the PPF. The PPF will not have any controlling equity in the new company that replaces UK Coal. Instead, the PPF’s interest in the new company will consist of a series of debt instruments. The PPF will not be involved in the day-to-day running of the company.