The UK government has agreed to reconsider its decision not to award compensation to WASPI women — those born in the 1950s whose state pension age was raised to equal that of men. This follows the emergence of new evidence that was not available during the original decision-making process. The reconsideration comes after an intense campaign by the women’s advocacy group Women Against State Pension Inequality (WASPI), who argue they were not given adequate notice about the pension age increase.
£2,950 WASPI Compensation New Hope
The Work and Pensions Secretary, Pat McFadden, announced that the government would revisit its earlier decision to deny compensation to 1950s-born women affected by the increase in state pension age. Originally, these women were expecting to receive their state pension at 60, but the law was changed in 1995 to equalise the pension age between men and women, gradually raising women’s state pension age from 60 to 65, starting from 2010.
Why Was Compensation Denied Initially?
Despite the Parliamentary and Health Service Ombudsman (PHSO) recommending that the women be compensated with £2,950 each, the government initially decided not to award compensation. The government argued that the changes were well-publicised and that the women had been given sufficient notice. However, new evidence has surfaced suggesting that the communication of these changes was inadequate, particularly for those approaching retirement.
What’s at Stake?
The £2,950 compensation could potentially cost the government up to £10.5 billion. This compensation package is intended to address the financial hardship experienced by women who were left unable to properly plan for their retirement due to insufficient or unclear notice of the pension age changes.
However, Pat McFadden made it clear that reopening the decision does not mean that compensation will be automatically awarded. He said:
“Retaking this decision should not be taken as an indication that the government will necessarily decide that it should award financial redress.”
Key Changes and Impact on Women
The pension age increase, which started being phased in from 2010, affected about 3.5 million women. These women were on the cusp of retirement or heading toward it when they learned that their state pension age would be delayed.
How Many Women Are Affected?
| Affected Group | Original Pension Age | New Pension Age | Impact |
|---|---|---|---|
| Women born before 1950 | 60 | 60 | No change |
| Women born 1950-1955 | 60 | 65 | Significant delay |
| Women born after 1955 | 60-65 | 65 | Gradual increase in pension age |
As shown, the key issue lies in the transition for women born between 1950 and 1955, whose pension age was suddenly raised from 60 to 65 without adequate notice or consideration for those close to retirement.
What Does the New Evidence Suggest?
According to Pat McFadden, the government has uncovered new evidence which suggests that the communication regarding the changes was not as clear or widespread as originally believed. This has led to a situation where these women were caught off guard, unable to make the necessary adjustments to their financial planning, which has caused significant distress.
Response from WASPI Campaign
The announcement to reopen the compensation decision has been hailed as a “major step forward” by Angela Madden, Chair of the Women Against State Pension Inequality (WASPI) campaign.
She said:
“For 10 years we have been fighting for compensation. The Government has fought us tooth and nail every step of the way. The Government now knows it got it wrong, and we are pleased they are now trying to do it properly. We hope they also try to do it quickly because every 13 minutes a Waspi woman dies.”
WASPI has long argued that the government’s failure to provide adequate notice about the state pension age increase left women with insufficient time to adjust their retirement plans.
Expert Opinions on the WASPI Issue
Pat McFadden (Secretary of State for Work and Pensions)
“Retaking this decision should not be taken as an indication that the government will necessarily decide that it should award financial redress.”
Angela Madden (Chair of WASPI)
“We are pleased that the Government is now trying to do it properly. The only correct thing to do is to immediately compensate the 3.6 million Waspi women who have already waited too long for justice.”
David Phillips (Senior Research Economist, Institute for Fiscal Studies)
“This case highlights the importance of transparency and clear communication in policy changes that affect people’s financial security. While the government’s intention to equalise the pension age was valid, failing to inform the affected women adequately undermines the fairness of the process.”
What Happens Next?
Pat McFadden stated that the government would begin the process of reviewing the new evidence immediately, but warned that this does not guarantee that compensation will be awarded. The final decision will depend on the government’s assessment of the new evidence, the potential financial cost, and broader policy considerations.
The reconsideration process could take several months, during which time the government will consult with relevant stakeholders, including WASPI, financial experts, and the Parliamentary Ombudsman.
Final Words
The UK government’s decision to reopen the compensation case for WASPI women marks an important step forward, especially after years of campaigning. While the new evidence may lead to compensation for the 3.5 million women affected by the pension age change, the outcome is still uncertain
FAQs
How many women are affected by this change?
Approximately 3.5 million women born between 1950 and 1955 were impacted by the change in state pension age.
What is the total potential cost of the compensation?
If the government decides to award £2,950 to each eligible woman, the total cost could amount to £10.5 billion.
Why were women not given enough notice about the pension changes?
The WASPI campaign argues that the communication of the pension age increase was inadequate, particularly for women who were close to retirement.
Will all WASPI women receive £2,950?
Not necessarily. The government’s reconsideration of compensation does not guarantee that the full £2,950 package will be awarded.
When will the government decide on compensation?
The decision process is ongoing, with Pat McFadden stating that the government would begin reviewing the new evidence immediately.