Labour’s trade union spokesman Ian Lavery under fire for union subsidised mortgage

The MP has denied any financial wrongdoing after it appeared he had received £72,500 from a benevolent fund set up by sick miners

Ian Lavery received a mortgage from the benevolent fund set up by the unions to help miners (Twitter)

Labour’s trade union spokesman received a heavily subsidised mortgage from a union benevolent fund paid for by mineworkers, it has been revealed.

Ian Lavery MP has denied any wrongdoing after it was revealed he received a £72,500 mortgage in 1994 from the National Union of Mineworkers (NUM) repayable at less than half the market rate.

The MP for Wansbeck, who was general secretary of its Northumberland branch between 1996 and 2002 before becoming president of the entire union, said his mortgage was a “private” matter, according to BBC Newsnight.

Newsnight claims the “sweetheart” interest rate on the mortgage would have been around three per cent - instead of the eight per cent market rate - which would have saved Mr Lavery thousands over the years.

It comes after Mr Lavery was criticised for accepting at least £1.6m in donations from sick miners to prop up the declining northern branch.

Many mineworkers donated part of the compensation they have received for the industrial related illnesses and injuries to the union.

When Mr Lavery’s successor was appointed following his election to parliament in 2010, the branch was reported to have just six active members.

Mineworkers donated £1.6m to the union from their successful compensation claims for industrial illness and injury. Pictured: a coal miner at work at a colliery in Northumberland circa 1961 (Getty Images/Fox Photo) (Getty)

The financial records first came to light last month when the Sunday Times revealed Mr Lavery had received around £750,000 in pay, pension contributions and other benefits during his time at the union as both regional general secretary and president until he stood down.

The money covered more than £550,000 in pay, another £45,000 in car allowances and more than £140,000 towards Mr Lavery’s pension.

Conservative MP Paul Scully told the newspaper he had written to the parliamentary commissioner for standards, Kathryn Hudson, asking her to investigate.

He said: “As Labour’s shadow minister for trade unions, it’s essential that Ian Lavery is totally open and transparent about his financial dealings with the NUM, making it clear to the public that he hasn’t been using his old trade union as a private piggy bank.”

Mr Lavery has refuted the allegations, telling Newsnight: "The NUMNA accounts were professionally audited and accepted by the Certification Officer on an annual basis.

"I refute any allegations of financial irregularities".