It is thought hundreds of retired miners in Barnsley will lose out on free coal for life and have their pensions cut after UK Coal went into administration last month.
They are among thousands nationwide who will no longer receive an annual fuel concession and have their pensions cut by ten per cent.
The move has been made by the Pension Protection Fund to guarantee the jobs of workers still with UK Coal.
The decision will affect anyone who worked in the mining industry after privatisation on January 1, 1995.
Former miner, MP and NUM official Mick Clapham believes a significant number of people in Barnsley are affected and said they will lose out on about four tonnes of coal per year.
"It would be a bitter blow for them, particularly with this period of austerity.
"It will be an added cost and these people may find it hard to come to terms with decreasing incomes.
"My view is it should be maintained, it is their right and was written into miners' contracts."
Former mine and NUM official Maurice Kent, 61, said many Barnsley workers could be affected as those who worked at Redbrook Colliery went on to work at Kingsley and then Selby.
Chris Kitchen, NUM national secretary, said it is very bad news but not a total loss.
"As it stands it's a definite the concessionary fuel has been stopped because there is no company to pay the bill, but we are looking at trying to mitigate the impact as much as we can. The favoured option would be to get the government to accept responsibility."
