Waspi women may finally get compensation after state pension age changes

Women born in the 1950s are in line for compensation after a new report urged the government to "do the right thing" for those who have missed out on state pension payments. 

It follows a campaign by the Women Against State Pension Inequality (Waspi), which warned that "sudden increases" to the state pension age between 2010 and 2018 had disrupted their "retirement plans, finances and health", said the Express.

Women who took their complaint to the Parliamentary and Health Service Ombudsman (PHSO) have now been told that the Department for Work and Pensions (DWP) did not adequately inform thousands of women that their state pension age had changed. 

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The result was that women "lost opportunities" to make informed decisions about their retirement, impacting their "personal autonomy and financial control", the report stated.

As a consequence, the body has now called for the government to rectify the matter, with PHSO chief executive Rebecca Hilsenrath saying Parliament must "act swiftly" to establish compensation and offer women "the quickest route to remedy".

But there are fears that the compensation plan "will not get the go-ahead", said the i news site, because "it would be so costly".

Who are the Waspi women?

The Waspi campaign is "fighting for justice for all women born in the 1950s" who were hit by changes to the women's state pension age, which increased from 60 to 68 between 2010 and 2018 to align with men's state pension age.

The group insists the age alteration was implemented with "little notice", said MoneyWeek, consequently "leaving many in financial turmoil".

The DWP has been blamed for poor communication, which made it harder for women to plan for missing out on the payments. This meant many saw their retirement plans "dashed", said Rest Less. 

Waspi estimates that almost four million women were affected by the changes. Many of those affected received a letter telling them that their retirement age was going up "just one year before they were supposed to get their pension", said the Mirror, and "lots of others only had two, three, four or five years' warning". Some women have claimed they received no notice at all.

Why are Waspi women getting support now?

The issue has gained attention since 2018. However, the latest decision on the fight for compensation has catapulted the affected women into the spotlight.

The PHSO already concluded in 2021 that the DWP had failed to provide targeted information about the changes, which it described as "maladministration". 

However, the latest findings have gone a step further in recommending Parliament intervene on the matter after the DWP said it would "refuse to comply" with recommendations. The PHSO has now urged Parliament to "hold the department to account" in helping those impacted by state pension age changes.

Speaking to the BBC Radio 5 Live's Nicky Campbell, Waspi chair Angela Madden said she was "appalled the Department for Work and Pensions just don't accept they have done something wrong", a position she added was "disrespectful" to 1950s-born women. 

However, she also expressed her delight Parliament would now have a "chance to discuss this properly". 

How much compensation will Waspi women receive?

The Waspi campaign had previously called for "compensation of at least £10,000", a level 6 payout based on PHSO compensation scales, said Rest Less.

But while compensation has been recommended, the report has suggested a level 4 amount – between £1,000 and £2,950 per victim – which would be "far short of the sums campaigners hoped for", said the Mirror. 

According to the report, to classify the state pension age issue as a level 4 injustice is likely to cost the Treasury between £3.5 billion and £10.5 billion.

The recommendations aren't legally binding, said MoneyWeek, but the general election this year "could work in the Waspi women's favour" as MPs wouldn't want to “harm their chances at the ballot box” by ignoring recommendations.

On the other hand, it can take a while to set up a compensation scheme and it could be delayed due to the election, added the financial website, so redress may still be a "distant reality" for the women impacted.