Procurement of the delivery of cash entitlements and administration of the National Concessionary Fuel Scheme

In March 1995, following privatisation of the coal industry, HM Government inherited a legal obligation to certain former employees of the coal industry to fulfil a contractual legacy entitlement to an amount of solid fuel or cash-in-lieu of that fuel.

The rules governing the entitlements are contained in fuel agreements originally put in place in the 1980s between British Coal Corporation and the Mining Unions and amended from time to time until privatisation.

The vast majority of qualifying individuals now choose the cash-in-lieu option (c22,000) with around 2,700 (October 2024) still receiving solid fuel. This number is declining in line with mortality rates.

The supplier shall manage all aspects of the National Concessionary Fuel Scheme.

It is a demand led contract based on decreasing numbers with a number of variables and uncertainties. A flexible service which allows for a decrease of the business and unpredicted changes in requirements is required.

The full requirements will be set out in the specification but will include:

• Payment of cash benefits – quarterly totalling c£28,000,000 (declining year on year)
• Management of entitlements through annual certificates
• General administration of services to Beneficiaries including correspondence relevant to the services
• Effective liaison with the solid fuel contractor – providing instructions to increase, reduce or stop solid fuel deliveries.
• Participation in the National Fraud Initiative; management and pursuit of fraud and error and overpayments/irrecoverable losses
• Management of data protection; cyber security and equalities compliance

Concessionaires are based in coalfield communities in the UK with high concentrations of individuals in South Wales and Northern England.