More than �2bn has been paid out in miners' compensation

Adam Price says he has evidence that the pension fund cash is being used, even though UK minister, Nigel Griffiths, denies this is the case.

The Carmarthen East and Dinefwr MP claims as much as �3bn has been taken from the pension fund since 1994. The Department of Trade says it would be "inappropriate" to comment although Mr Griffiths will respond in due course.

After the break-up of the coal industry in the 1980s the government agreed to guarantee miners' pension funds in return for access to half of any surpluses.

According to a statement by the then energy minister in 1999 the money is allowed to be used to pay for any coal-related liabilities.

MP Adam Price said there was no excuse for misleading parliament

Mr Price claims the Government is doing just that - using it to help pay for compensation schemes.

"It's scandalous that the Government has been found guilty of using miners' own money to pay their own compensation," said the MP.

"Forty years ago in Aberfan a Labour Government used the community's own funds to remove the tip.

"We now have this Labour Government raiding the miners' pension funds to pay compensation for diseases contracted underground."

A landmark legal ruling six years ago allowed miners to claim compensation for chest diseases and ailment suffered as a result of working underground.

The government has already paid out more than �2bn to miners and their families. In January, almost �400m had been paid out claimants in Wales.

Mr Price said the Government was "clearly ashamed" at but that was no excuse for misleading parliament.