A sign of progress for the WASPI (Women Against State Pension Inequality) compensation campaign has emerged after an MP called for a fresh “assessment” of the issue. Numerous MPs individually support the cause for payouts to the women born in the 1950s, who were impacted when their state pension age was abruptly increased from 60 to 65 and then 66. Some MPs have previously suggested payouts of £10,000 or more.
A pivotal report released in March 2024 by the Parliamentary and Health Service Ombudsman suggested they should receive compensation between £1,000 and £2,950. The group had previously determined that there was ‘maladministration’ in how the DWP communicated the change to these women.
Many of these women were caught off guard by the change to their state pension age, with their retirement plans shattered when discovering they would have to wait an additional five or six years to claim their state pension. Despite this, Labour announced last month that there would be no compensation scheme, arguing that most of the WASPI generation women were aware of the change, and that the cost to the taxpayer could not be justified.
Liberal Democrat MP Steve Darling posed a parliamentary question asking if the Government would consider the case presented in the Ombudsman’s report last month to “make an assessment of the potential impact of maladministration around communications of state pension age changes”. A response was issued by Torsten Bell, who was just appointed as a parliamentary under-secretary for the DWP this week (January 14).
He commented: “The Department for Work and Pensions has indicated that it will not be possible to answer this question within the usual time period. An answer is being prepared and will be provided as soon as it is available.”
Despite the Government’s stance against compensation, MPs are still actively discussing the WASPI issue, with a debate being held today (January 15) in Westminster Hall. Following the announcement there would be no payouts, MPs initiated two separate early day motions, both advocating for the reversal of the decision.
Several political parties, including the Liberal Democrats, the Green Party, and the SNP, have consistently supported compensating WASPI women. Also this month, WASPI campaigners will have a chance to present their arguments directly to policymakers during a hearing with the Work and Pensions Committee on January 22.
Angela Madden, chair of the WASPI campaign, said: “That will be an opportunity for us to talk to the committee about what are our options now, what we would like to happen now. The select committee is part of the Government process.
“They are the people who hold the Department of Work and Pensions to account. A letter from them or a request from them has to be taken seriously by the department.” The state pension age currently stands at 66 for both men and women, but it is expected to rise gradually between 2026 and 2028.
People planning for their retirement may want to note that the state pension age is scheduled to rise from 67 to 68 between 2044 and 2046. There have been reports that MPs could accelerate this change.
The Department for Work and Pensions (DWP) recently stated: “There is a statutory requirement to review the state pension age set out in the Pension Act 2014 and in line with legislation, the next review must be completed by the end of March 2029.”