Taxpayers to foot £30m bill for UK Coal staff
TAXPAYERS are bracing themselves for a £30m bill to help workers at two of the UK’s last remaining deep coal mines, including one in Yorkshire, that are due to close this year with the loss of 1,300 jobs.
The Government is expected to put forward changes to the Small Business Bill to allow for concessionary coal payments to UK Coal workers, Sky News said.
Earlier this month, the government rejected a plea for more than £300m of state aid to prolong mining to 2018.
A source said the aggregate sum involved was unclear but estimated the bill to be between £28m and £30m.
A £4m loan from the Government last year was agreed to help with the managed closure of Kellingley mine in North Yorkshire, which employs 700 people, and Thoresby in Nottinghamshire.
More than £15m was received from suppliers, customers and other stakeholders to alongside the Government loan.
The mines’ closures, which are due to take place later this year, are expected to cost up to 1,300 jobs.
A separate £8m loan to prevent the insolvency of Hatfield colliery in South Yorkshire, which would be left as Britain’s last remaining deep pit mine, was agreed in January.
Yesterday, the Pension Protection Fund announced it had agreed terms to sell its stake in Harworth Estates, UK Coal’s former property arm, in a £150m deal.
UK Coal provides 8% of the total coal consumed in the UK.
It said a strong pound meant it had lost out to cheaper imported coal, especially from the US, where the boom in shale gas has forced coal miners to find new markets in Europe.
Last April, energy minister Michael Fallon said: “The taxpayer is better served by supporting a managed closure of the mines.
“However, deep coal mining remains an inherently risky business. There is no value for money case for a level of investment that would keep the deep mines open beyond this managed wind-down period to autumn 2015.”
A Government spokesman said: “The Government is working closely with UK Coal to keep these two coal mines open.
“We will make sure UK Coal miners receive the security they are entitled to through concessionary payments.”
