State Pension  

Ombudsman rules Waspi women owed compensation by DWP

According to the ombudsman the DWP failed to use this research and feedback to improve its service and performance.

Rebecca Long-Bailey, a Labour party MP posted on social media site ‘X’ in response to the findings calling on the government to “right this historic wrong”.

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She said: “This report is not the robust vindication owed to those who’ve fought years to reverse the disgraceful injustice faced by millions of women born in the 1950s, denied money due to them after the government increased state pension age without reasonable warning.

“The UK government must right this historic wrong, and go beyond the recommendations of the Parliamentary and Health Service Ombudsman and deliver fair compensation to these women as a matter of urgency.”

Potential new bill 

Last month (February 12) MP Alan Brown called on the government to give compensation payouts of £10,000 or more to women affected by the state pension age issue.

Brown said with regards to compensation, a minimum Level 5 banding of the Parliamentary and Health Service Ombudsman remedy scales should be applied but that a Level 6 band with payouts of £10,000 or more would be “most appropriate”.

He suggested changing non-dom tax status and changing the rates in capital gains tax could be two ways that the compensation scheme could be funded. 

The draft legislation has been listed for a second reading on April 19, 2024.

A DWP spokesperson said: “We will consider the Ombudsman’s report and respond in due course, having cooperated fully throughout this investigation.

“The government has always been committed to supporting all pensioners in a sustainable way that gives them a dignified retirement whilst also being fair to them and taxpayers.

“The state pension is the foundation of income in retirement and will remain so as we deliver a further 8.5 per cent rise in April which will increase the state pension for 12mn pensioners by £900.”

alina.khan@ft.com