The DWP has issued a definitive statement on whether or not the WASPI (Women Against State Pension Inequality) women will get compensation payouts.
Work and Pensions Secretary Liz Kendall, has told the House of Commons there will be “no scheme” for compensation, as it “isn’t fair or value for taxpayers’ money”.
The WASPI generation of women are 1950s-born women who were affected when their state pension age for women increased from 60 to 65 to equalise it with men.
The women were not properly informed of the change, with many unaware they would have to wait extra years to get their state pension, throwing into disarray their retirement plans.
Ms Kendall said the Government accepts there was “maladministration” in how the change was communicated, as the Parliamentary and Health Service Ombudsman has found.
Yet as “the vast majority” of the women knew the state pension age was increasing, she said it would not be appropriate to have a flat compensation payout either.
Going forward, Ms Kendall pledged the Government would give “clear and sufficient” notice of any changes to the state pension age.
A landmark report from the Parliamentary and Health Service Ombudsman came out in March this year recommending payouts of between £1,000 and £2,950, urging Parliament to take up the issue.
Rebecca Hilsenrath, chief executive of the PHSO, said at the time: “The UK’s national ombudsman has made a finding of failings by DWP in this case and has ruled that the women affected are owed compensation.
“DWP has clearly indicated that it will refuse to comply. This is unacceptable. The department must do the right thing and it must be held to account for failure to do so.
“Complainants should not have to wait and see whether DWP will take action to rectify its failings.”
Since then, the topic has been debated in Parliament with top Labour MPs that have come out in support of compensation including work and pensions minister, Sir Stephen Timms and Debbie Abrahams, who chairs the Work and Pensions Committee.
The WASPI campaign previously said there should be tiered payments depending on how individual women were affected.
WASPI campaign chair, Angela Madden, said ahead of the announcement today: “Any scheme should see a universal payment for all those who the government failed to inform of state pension age changes, with additional provision for those who suffered the most acute, direct financial loss.
“This approach was unanimously endorsed by the cross-party Work and Pensions Committee earlier this year and we expect to see it honoured in the Government’s approach today.”
