DWP explains why earlier WASPI letters 'would have made little difference'
The Department for Work and Pensions (DWP) has been questioned over why the Government decided not to grant compensation to WASPI women. The Women Against State Pension Inequality (WASPI) campaigners were left disheartened when, just before the Christmas recess, the Government declared that there would be no compensation for women born in the 1950s who were impacted by the increase in state pension age from 60 to 65 and then 66.
Many of these women argue they were not properly informed about this change. The Parliamentary and Health Service Ombudsman found 'maladministration' in the DWP's communication efforts with the women, suggesting compensation payouts up to £2,950.
However, Liz Kendall, the Work and Pensions Secretary, announced in December 2024 that no compensation scheme would be implemented. The Government apologised for the DWP's delay in contacting the women but set out its position that it "cannot accept that sending letters earlier would have had a significant impact".
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This statement came after the Ombudsman found there was a 28-month delay in notifying the women about the changes. DWP officials appeared before the Work and Pensions Committee this week to discuss the WASPI decision.
Committee member John Milne challenged the Government's reasoning, stating: "The suggestion that the letters wouldn’t have worked anyway was a major part of the Secretary of State’s reasoning in not offering compensation. It’s a remarkable claim because letters as a form of communication were used and still are used by every area of Government all the time."
In response, DWP permanent secretary Sir Peter Schofield referenced studies showing that when individuals receive unexpected letters, only about 25% recall getting them. He said the key question was: "If we had written those letters 28 months earlier, would it have made a significant enough difference to count as injustice, and to take you into the context of talking about remedy."
The civil servant further explained: "And in that context, the Government’s view was that it did not, as the Secretary of State set out." He drew parallels between the WASPI case and the matter of getting an unexpected letter, to HMRC's campaign to inform people who missed out on state pension payments due to lacking Home Responsibilities Protection (HRP) in their National Insurance records.
HRP was designed to fill National Insurance record gaps for those caring at home, and historically benefited mostly women caring for children at home. HMRC has been sending out letters to potentially impacted women—however, Schofield highlighted: "The rate of people coming forward has been very low compared to what we projected. The work we’ve done suggests that a lot of people, they get a message from HMRC and they don’t believe it’s from HMRC."
The senior DWP official emphasised the need for improved communication within the department, stating: "Absolutely we need to make sure our letters are more effective. But it’s not only that that is the only channel of communication." He underscored the shift towards digital platforms for information, advising: "Increasingly, if you want to know about your state pension age, you shouldn’t be relying on letters, you should go on the check your state pension website, where you can identify in a personalised way, what is your own state pension age and where are you in terms of your own National Insurance records and where you need to be."
The move towards accessing your details online, Mr Schofield said. He claimed: "That is the way forward, enabling online channels for people to self serve and to get the information they need." The DWP heads also set out the Government's view that most women did know about the change to their state pension age.
Committee chair Debbie Abrahams pushed back on this point, stating that "many women would disagree" that they knew their state pension age would be going up.