'WASPI' women affected by State Pension age rise WON'T be compensated, Government confirms – here's what you need to know
Women who say they weren't given fair notice about a rise in State Pension age will NOT receive compensation, Work and Pensions Secretary Liz Kendall has confirmed today (17 December). The decision, which will leave many disappointed, goes against recommendations from the Parliamentary and Health Service Ombudsman (PHSO) to make payouts.
In March, the PHSO published a long-delayed report on the impact that a rise in State Pension age had on women born on or after 6 April 1950.
According to the report, the Department for Work and Pensions (DWP)'s failure to provide "accurate, adequate and timely information" on the State Pension age rise meant that some women were unable to make informed decisions about their finances. The Ombudsman called for the Government to provide compensation for those affected as soon as possible.
However, Ms Kendall has now confirmed that the Government won't be following this recommendation, as "most women knew the State Pension age was increasing". The PHSO said it's "extremely rare" that an organisation it investigates doesn't accept its recommendations.
Compensation WON'T be paid
For the first time, the Government has acknowledged and apologised for a 28-month delay in writing to 1950s-born women about a rise in State Pension age.
However, it says that the majority of affected women did know that the State Pension age was changing. According to research by the DWP, 73% of women born in the 1950s knew about the change by 2004.
The Government argued that sending out letters earlier wouldn't have had a "significant impact" on whether women knew their State Pension age was rising, as only a quarter of respondents remembered receiving a letter that they weren't expecting. Based on these factors, it says it "cannot justify" paying compensation.
Ms Kendall said: "The Government has not taken this decision lightly, but we believe it is the right course of action. The proposed compensation scheme isn’t fair, or value for taxpayers’ money. I know that – on this specific decision – many 1950s born women will be disappointed. But we believe it is the right decision, and the fair decision."
Martin Lewis: Many women will be disappointed by this
Commenting on today's Women Against State Pension Inequality (WASPI) news on X (formerly Twitter) MoneySavingExpert.com (MSE) founder Martin Lewis said:
NEWS: Government won't pay out Waspi compensation.
There will be many disappointed women of a certain age today as DWP secretary of state Liz Kendall has said the Government won't make the payout for #WASPI women that the Parliamentary & Health Service Ombudsman recommended.
It's apologised for the 28 month delay in sending out letters in 2007, and accepts it was maladministration, but says in effect... these women whose state pension age was being pushed back didn't suffer a material direct financial loss.
It says research shows there was awareness of state pension age increasing, and doesn't think earlier letters would've had much impact. So doesn't think state should pay the £3.5 billion to £10 billion settlement.
After receiving questions from followers on whether the current Labour Government had broken an election promise, Martin posted a follow-up on X, which includes Keir Starmer's response to a question from our MSE's Leaders' Debate:
Some asking me if Labour has breached its 'election' promise over Waspi by not paying out. I don't think that is correct - it didn't promise that. In the MSE Leaders' Debate, this was the PM's full answer on #Waspi (last para most relevant).
The key word is 'election' though, some Labour MPs including shadow cabinet members vocally supported a payout pre-election.
Q. Will you follow the recommendations of the Parliamentary and Health Service Ombudsman and compensate women born in the 50s who have lost years of their state pension entitlement?
Sir Keir: "I am determined that the Labour Government I lead does everything it can to ensure people have security and dignity in retirement.
"Labour will maintain the triple lock on pensions and increase the state pension each year in line with inflation, average earnings, or by 2.5%, whichever is higher.
"And I know that accessing NHS care and rising crime and antisocial behaviour are particular concerns for many over-60s. Labour’s first steps for change in Government include cutting NHS waiting times with 40,000 more appointments each week, during evenings and weekends, paid for by cracking down on tax avoidance and non-dom loopholes. We will also crack down on crime and antisocial behaviour, with more neighbourhood police paid for by ending wasteful contracts signed off by Conservative ministers.
"The WASPI women have been through so much and have campaigned tirelessly over many years. The Conservatives had months to respond to the Ombudsman report before the election, but shamefully failed to do so. If we're privileged enough to come into Government after the election, we'll pick up the work that the Conservatives kicked into the long grass."
'Thousands' affected by delays being told about State Pension age change
The 1995 Pensions Act raised the State Pension age for women born on or after 6 April 1950 from 60 to 65 – bringing it in line with the State Pension age for men. This change came into place in 2010.
However, some women said the DWP didn't communicate these changes well enough, which meant they lost opportunities to make informed decisions and effectively plan for retirement.
In the PHSO's report, it concluded that "thousands" of women may have been affected by failings in the way the DWP communicated the rise in State Pension age, and recommended that a compensation scheme be set up "quickly".
The PHSO has no legal power to force the Government to accept its recommendation, so its next steps are to present its report to Parliament to hold the Government to account.
Angela Madden, chairwoman of the WASPI campaign group said: "An overwhelming majority of MPs back WASPI's calls for fair compensation and all options remain on the table. Parliament must now seek an alternative mechanism to force this issue on to the order paper so justice can be done."
You may be able to boost your State Pension by buying missing national insurance years – for full info on this, see our Voluntary national insurance contributions guide.
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