WASPI compensation latest as MPs push for 'rapid' action before summer recess

MPs are pushing for "rapid" action on compensation for women hit by changes to their State Pension age. The Department for Work and Pensions has been asked to present proposals for a financial remedy by the summer recess in July.

WASPI (Women Against State Pension Inequality) has waged a long-running campaign for justice and is now awaiting news of a Government compensation scheme. The changes that impacted them relate to women's State Pension age rising from 60 to 65 so that it was the same as that for men and then going up to 66 for both sexes.

Because of the way the increases were brought in, 3.8 million women born in the 1950s found their pension age had gone up. The Parliamentary and Health Service Ombudsman said the DWP had failed to give sufficient notification of the changes and has asked the House of Commons to look at compensation.

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Pensions minister Paul Maynard said the Government recognised the importance of providing information on changes to the State Pension age "in good time" to help individuals plan for their retirement.

Labour's former shadow chancellor John McDonnell said Parliament needs the proposals "rapidly, certainly before the recess."

Mr Maynard said he had heard this message "clearly", adding: “We do not wish undue delay, but as I keep saying it is a complex issue, not just a matter of ticking a box, so it needs to be got right." Compensating all women born in the 1950s at the level four range of £1,000-£2,950 each would involve spending between about £3.5 billion and £10.5 billion of public funds, the report said.

Conservative former minister Andrew Selous, Conservative MP for South West Bedfordshire, cautioned that the significant level of recompense will mean trimming back other expenditure or potentially raising taxes. He said: "If we're going to spend billions on this, then we have to be honest about what other things we cannot spend money on, things that those WASPI women themselves may very much want, or what other services we’re going to have to cut, or what other taxes are we going to have to raise." He added that the Government should "look at a dedicated fund in the Treasury reserves for contingencies."

Labour former minister Sir George Howarth said a compensation scheme should not be deferred until after a change in Government, adding: "My fear is we will not deal with it urgently and, let me be clear, I do not believe that allowing the clock to run down until the forthcoming general election is an acceptable option."

"As has been mentioned by others, every generation experiences injustices. In my time in this House they've included thalidomide victims, Hillsborough, Primodos, contaminated blood and most recently the Horizon scandal. For me they are all debts of honour which we have a duty to redeem. I suspect that a majority of members of this House would agree with me, so please, let us have the opportunity to do so."

Conservative MP Peter Aldous (Waveney) said it would create a "constitutional gap" if the recommendations of the ombudsman were not acted on, adding that "a mechanism should be put in place before the summer recess."

Mr Aldous, co-chairman of the State Pension Inequality for Women All-Party Parliamentary Group (APPG) said: "Finite resources are not an excuse for failing to provide a fair remedy. If Parliament chooses to do nothing, that will undermine the ombudsman. The DWP should respect what Parliament recommends."

Conservative MP Matt Vickers (Stockton South) said his mother had been affected by the changes, adding: "I urge the Government to consider the report as quickly as possible and ensure that WASPI women get the fair and fast compensation that they deserve."

A DWP spokesperson said: "We are considering the Ombudsman's report and will 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 delivered a further 8.5 per cent rise last month, increasing the State Pension for 12 million pensioners. This has seen the full rate of the new State Pension rise by £900."

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