Waspi women will not receive compensation, Labour Government confirms

Women affected by changes to the state pension age will not receive compensation, Work and Pensions Secretary Liz Kendall has announced.

Women Against State Pension Inequality (Waspi) have advocated for support for women who were born in the 1950s and say they did not get adequate warnings about changes to the state pension.

“The Government does not believe paying a flat rate to all women at a cost of up to £10.5 billion would be fair or proportionate to taxpayers,” Ms Kendall told the Commons.

Ms Kendall did accept the Ombudsman’s finding of maladministration and has apologised for a 28-month delay in writing to 1950s-born women.

In a statement, she said: “These two facts: that most women knew the state pension age was increasing and that letters aren’t as significant as the Ombudsman says, as well as other reasons, have informed our conclusion that there should be no scheme of financial compensation to 1950s-born women, in response to the Ombudsman’s report.”

She added: “The alternative put forward in the report is for a flat rate compensation scheme, at level four of the Ombudsman’s scale of injustice, this would provide £1,000 to £2,950 per person at a total cost of £3.5 billion and 10.5 billion.

“Given the vast majority of women knew the state pension age was increasing, the Government does not believe paying a flat rate to all women at a cost of up to £10.5 billion would be fair or proportionate to taxpayers.”

Ms Kendall said she understood the unhappiness from those affected by the issue, including the announcement on Tuesday.

She said: “I know there are women born in the 1950s who want and deserve a better life, they have worked hard in paid jobs and in bringing up their families. Many are struggling financially with the cost of living and fewer savings to fall back on, and they worry about their health and how their children and grandchildren will get on.

“To those women I say, this Government will protect the pensions triple lock, so your state pension will increase by up to £1,900 per year by the end of this Parliament.

“We’ll drive down waiting lists so you get the treatment you need with an extra £22 billion of funding for the NHS this year and next. And we’ll deliver the jobs, homes and opportunities your families need to build a better life. 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.”

Opposition politicians branded the decision "heartless" and a "huge disappointment".

Liberal Democrat work and pensions spokesman Steve Darling said: “Today is a day of shame for the Government.

“The new Government has turned its back on millions of pension-age women who were wronged through no fault of their own, ignoring the independent ombudsman’s recommendations, and that is frankly disgraceful.

“The Conservative Party left our economy in a shambles, but asking wronged pensioners to pay the price of their mismanagement is simply wrong.”

He added: “Today’s heartless decision cannot be allowed to stand and we will be pressing ministers to give those affected the fair treatment they deserve.”

Ministers must “own” the Government’s decision not to provide compensation to women affected by changes to the state pension changes, the Conservative shadow work and pensions secretary has said.

Helen Whately told the Commons: “No doubt campaigners will note the Government’s apology for the decisions made between 2005 and 2007 which led to a 28-month delay in sending out letters which the ombudsman identified as maladministration but let’s be clear, the decision to provide no compensation is the Government’s decision and they need to own it.

“I’m not going to let them get away with saying that this is because of a fictional black hole in the public finances. The country’s financial position now is a result of their political choices.

“They should not try to dodge responsibility by suggesting to waspi women that if times were different, they might have come to a different conclusion.”

Ms Whately had earlier said: “I’m glad that (Work and Pensions Secretary Liz Kendall) has picked this issue up since coming into office and has brought her statement to the House today. I will be considering it in more detail in the days and weeks to come, as well as the basis on which she has reached her conclusion.

“I am sure that the Government’s statement today will be a huge disappointment to waspi women and I recognise the strength of feeling on this.”

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