Ministers are facing demands for a huge payout to so-called ‘WASPI’ women today after a watchdog found they were not told about changes to state pension age.
Thousands of women born in the 1950s could be in line for compensation after the Parliamentary and Health Service Ombudsman urged government to ‘do the right thing’.
The ombudsman has asked the Commons to intervene and ‘act swiftly’ to make sure a compensation scheme is established, suggesting sums could range from £1,000 to £2,950.
However, MPs are pushing for that figure to be boosted to £10,000 each.
That could result in a multi-billion pound payout, with campaigners adamant millions had their retirement plans plunged into chaos and were left out of pocket. Hundreds of thousands are said to have died without seeing a resolution.
To date, the DWP has not acknowledged failings or put things right for those affected – although Cabinet minister Mel Stride is expected to make a statement to the Commons next week.
Downing Street said it would be examining the contents of the report.
Thousands of women born in the 1950s could be in line for compensation after the Parliamentary and Health Service Ombudsman urged government to ‘do the right thing’ (pictured, a protest in 2019)
PHSO chief executive Rebecca Hilsenrath said: ‘The UK’s national ombudsman has made a finding of failings by DWP in this case, and has ruled that the women affected are owed compensation.
‘DWP has clearly indicated that it will refuse to comply. This is unacceptable. The department must do the right thing and it must be held to account for failure to do so.
‘Complainants should not have to wait and see whether DWP will take action to rectify its failings.
‘Given the significant concerns we have that it will fail to act on our findings, and given the need to make things right for the affected women as soon as possible, we have proactively asked Parliament to intervene and hold the department to account.
‘Parliament now needs to act swiftly, and make sure a compensation scheme is established. We think this will provide women with the quickest route to remedy.’
The 1995 Pensions Act and subsequent legislation raised the state pension age for women born on or after April 6 1950.
The ombudsman investigated complaints that, since 1995, DWP has failed to provide accurate, adequate and timely information about areas of state pension reform.
The ombudsman published stage one of its investigation in July 2021. It found failings in the way DWP communicated changes to women’s state pension age.
The DWP’s handling of the pension age changes meant some women lost opportunities to make informed decisions about their finances. It diminished their sense of personal autonomy and financial control, the ombudsman said.
Labour’s John McDonnell is among the MPs calling for compensation to be higher than the recommendations
Labour former frontbencher Rebecca Long-Bailey said the packages should ‘go beyond’ the report recommendations
WASPI Coordinator Debbie De Spon told Times Radio that hundreds of thousands of women had already died waiting for compensation.
‘We think that action needs to happen now,’ she said.
‘There’s a Waspi woman dying every 13 minutes. Over 270,000 WASPI women have died waiting for compensation. It’s a historic injustice. And like the other injustices that are all waiting for to be rectified, we think we’re well up in that queue of people.’
Ms De Spon said: ‘We have to bear in mind that the government saved over £181 billion by increasing the state pension age just for women, and we’re asking for a very small fraction of that back for compensation for the maladministration.
‘We’re not asking for the full return of our state pensions, which would be far, far more.’
In addition to paying compensation, the ombudsman made it clear that the DWP should acknowledge its failings and apologise for the impact it has had on complainants and others similarly affected.
It said it has received a series of complaints relating to how the DWP has communicated a variety of state pension reforms, and concerns about communication of changes to the state pension age constitute only one area of complaint.
Tory MP Peter Aldous, vice-chairman of the State Pension Inequality for Women All-Party Parliamentary Group said ‘compensation in line with Category 6 injustice must be agreed by Parliament’.
Level 6 compensation is £10,000 or more.
Mr Aldous said: ‘These millions of women worked, cared for families, and supported communities all their lives. They deserve the dignity of fast compensation.
‘In line with the report submitted by the State Pension Inequality for Women APPG to the PHSO in 2022, compensation in line with category 6 injustice must be agreed by Parliament. The campaign for justice for 1950s women goes on until Parliament reaches the right conclusion.’
Labour and Lib Dem MPs have been prominent in backing the campaign. Lib Dem frontbencher Wendy Chamberlain said: ‘After years of waiting, the Ombudsman has finally recommended compensation for WASPI women.
‘These courageous women, who have tirelessly campaigned for justice after being left out of pocket, deserve our admiration for their persistence.
‘Liberal Democrats have long supported WASPI in their campaign and it is now up to this Conservative Government to come forward with a plan to get these women the compensation they are owed.’
The Prime Minister’s official spokesman said: ‘We obviously understand the close interest in this and you will appreciate this report has only just been published.
‘The Government will now consider the ombudsman’s report and respond to their recommendations formally in due course, and we will also co-operate with the parliamentary process as we have done throughout with the ombudsman.
‘More broadly, we have always been committed to supporting pensioners in a way that provides them with a sustainable retirement whilst also balancing fairness to them and taxpayers, for example, as you know, we’ve maintained our commitment to the triple lock and next month this will increase by £900 – an uplift of 8.5% which is double the rate of inflation.’