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Govt fails to commit to paying Waspi compensation

Govt fails to commit to paying Waspi compensation
Work and pensions secretary Mel Stride (EPA-EFE/ANDY RAIN)

Work and pensions secretary Mel Stride has refused to commit to compensate women affected by the state pension age change.

In a statement to the House of Commons yesterday (March 25), Stride said the government would “consider the findings” of the recent Parliament and Health Ombudsman’s report but refused to confirm whether the government will pay compensation or not.

In its report, published last week, the PHSO said the DWP had failed to properly communicate changes to the women’s state pension age and that the government should pay compensation and apologise to those affected.

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It recommended pay-outs of between £1,000 and £2,950 per person, which could cost between £3.5bn and £10.5bn.

Stride pointed out that the report covered a “narrow period” between 2005 and 2007 and that the ombudsman found between 1995 and 2004, the DWP’s communication of changes to state pension age "reflected the standards we would expect it to meet".

He also said the report confirmed accurate information about changes to the state pension age was publicly available in leaflets, through the DWP’s pension education campaigns, through the DWP’s agencies and on its website. 

Stride said he was committed to the “full and proper consideration” of the ombudsman’s report. 

He added: “I note that the ombudsman has laid his final report on this issue before Parliament, and of course I can assure the House that the government will continue to engage fully and constructively with Parliament, as we have done with the ombudsman.”

Labour has also yet to set out its position on the issue of compensation but speaking over the weekend the party's chair Anneliese Dodds also refused to make any commitments.

The PHSO was tasked with looking specifically at whether the women were properly informed of the changes in the state pension age. The previous court cases the Waspi campaigners fought against the government looked into whether the pension age equalisation process overall was fair.

Speaking to the BBC she said it would not be credible for her to "pluck out of the air" how any compensation could work.

Tom Selby, director of public policy at AJ Bell, said the government “appears to be playing for time” on paying compensation.

“Despite a weekend of furious negative publicity following the ombudsman’s recommendation that compensation of up to £10.5bn be paid to women impacted by the state pension age increases, the government has so far refused to commit to handing over any cash at all – and is under no obligation to do so.

“For its part, Labour is waiting for the government to show its hand before saying whether or not compensation should be paid. 

“So, despite all the words to date, we are no closer to finding out if the so-called ‘Waspi’ women born in the 1950s will get any money, either from this administration or the next one.”