Plans for the managed closure of the Kellingly and Thoresby underground mines owned by UK Coal will leave 1300 people out of work.

The unions argue that the decision will force the miners onto state welfare benefits and job seekers’ allowance, costing the government more than they would otherwise spend if it provided state-funded aid to keep the mines operational.

Union officials describe the decision to shutter the two mines as “utter madness”

They said the closures would leave a &pound75 million ($A80.1 million) hole in the public purse from income tax and national insurance payments lost in 2016-18.

A report titled Merits of UK Coal State Aid Application, made to order by the Trades Union Congress, found that using state aid to keep the coal mines open until at least 2018 would be cost neutral.

The report claimed that investment of up to &pound74 million would be covered by the &pound86 million in extra profits expected to be made during this period on top of regular revenues of &pound500 million.

The report urged investment in carbon-capture technology to prolong productivity and criticised the government for not offering state aid, despite the fact that the governments of Spain, Germany and the Czech Republic all bailed out coal mines when facing similar circumstances.

The trade union said that recent events in the Ukraine had proven the importance of having a secured domestic power supply.

The lack of state aid and consequential closures will only further deepen the country’s reliance on imported energy sources, the union says.