WASPI compensation scheme proposal set for debate in Parliament

A compensation scheme for millions of women affected by an unexpected rise in their State Pension age is set to be debated in Parliament. MPs from all parties will discuss the next step in providing financial redress.

Women Against Statement Pension Inequality (WASPI) is fighting on behalf of millions of women who say their retirement plans, finances and health were affected by a lack of notification that their pension age had suddenly gone up.

A petition to "introduce a compensation scheme for WASPI women" has gathered almost 134,000 signatures, stating: "We call on the Government to fairly compensate WASPI women affected by the increases to their State Pension age and the associated failings in DWP communications."

Any petition that reaches 100,000 must be considered for parliamentary debate. With the House rising for winter recess on December 19, returning on January 6, it's now likely this would take place sometime in the new year.

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The changes at the heart of the complaints were introduced in the 1995 Conservative Government's State Pension Act, which increased the State Pension age for women from 60 to 65 so that it was the same as that for men, and the 2011 Pension Act, which put up the State Pension age further to 66 for both sexes. In all, 3.8 million women have been affected.

A report by the ombudsman found that the women should have had at least 28 months' more notice of the changes. It suggested that compensation at level four, ranging between £1,000 and £2,950, would be appropriate for those affected. Compensating all of those affected at its suggested level would mean spending between £3.5 billion and £10.5 billion.

The report found the DWP guilty of maladministration for failing to provide adequate warning to people whose pension age was going up from 60 to 65 as a result of the 1995 Pensions Act and for failing to handle complaints properly. However, it said the department had given enough notification about the impact of the Pensions Act 2011, which further pushed up the qualifying age from 65 to 66.

In its official response to the petition, the DWP said: "The Government is reviewing the Parliamentary and Health Service Ombudsman’s report and once this work has been undertaken, will be in a position to outline its approach. Changes to the State Pension age were made over a series of Acts, starting with the Pensions Act 1995 to equalise State Pension age.

"The Pensions Act 2007 brought forward recommendations of the Pensions Commission that the State Pension age should be increased to reflect increases in life expectancy and legislated to increase State Pension age to 68 over a thirty-year period. The Pensions Act 2011 and 2014 accelerated these timetables. In addition, the Pensions Act 2014 legislated to introduce periodic reviews of State Pension age. Each Act followed detailed consideration of the issues through public consultations.

"The Parliamentary and Health Service Ombudsman's (PHSO) report is not about changes to the State Pension age. The PHSO have been investigating the way DWP communicated State Pension age changes from 1995 onwards impacting 1950s-born women. The Ombudsman published their report on 21 March 2024, the culmination of almost six years' work.

"The PHSO has laid the report before Parliament and Government is carefully considering the report. It is a serious report that requires serious consideration and the Government recognises it is important to do so as quickly as possible. In addition, there have been a number of recent debates and questions in Parliament on the issue.

"As part of its consideration, the Government is listening respectfully to the women involved. The Minister for Pensions recently met representatives from WASPI Ltd, the first Minister to do so for 8 years, and has also met with the co-chairs of the All-Party Parliamentary Group on State Pension Inequality for Women and with the interim Ombudsman. Government respects the work of the Ombudsman and it is actively considering the report. Once this work has been undertaken, it will be in a position to outline its approach.

"This Government is absolutely committed to supporting pensioners and giving them the dignity and security they deserve. The State Pension provides the foundation income for people in retirement."

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