'Waspi’ women denied compensation: what you need to know
The government has rejected calls to compensate women hit by changes to the state pension age.
In March, the parliamentary and health Service ombudsman recommended compensation for women born in the 1950s, who weren’t properly informed when the pension age increased to 65.
The ombudsman found the Department for Work and Pensions failed to communicate this change effectively.
But this week, work and pensions secretary Liz Kendall rejected the ombudsman’s recommendation to pay £1,000 to £2,950 to more than 3 million affected women.
Why no compensation?
Kendall pointed to survey data from 2006 that showed 90% of affected women were aware of the change. She also said that compensating up to 3.8 million women could cost the government £10.5bn.
What’s reaction been like?
Campaigners are furious. The Women Against State Pension Inequality (Waspi) group called the decision an "insult”.
Waspi chair Angela Madden said:
"This is a bizarre and totally unjustified move which will leave anyone asking what the point of an ombudsman is if ministers can simply ignore their decisions.”
Opposition parties are criticising the decision and even some Labour MPs who previously signalled their support for the campaign have spoken out.
The charity Age UK has warned that it will only add to the “sense of injustice”.
What is Waspi?
Waspi stands for ‘Women Against State Pension Inequality.’ The campaign was set up when the state pension age for women was raised from 60 to 65 to match men's.
Women born in the 1950s argue they were unfairly treated, with some forced to wait up to six more years before receiving their pensions.
While Waspi agrees with levelling the pension age, they argue that the changes were not properly communicated, leaving many women with uncertain retirement plans and declining incomes.
Waspi claims over three million women were affected and estimates that 270,000 have died without receiving justice.
Read more about benefit-related news and advice here.
Gabrielle Pickard Whitehead
Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.
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