The UK government has announced it will revisit its decision to deny compensation to millions of 'Waspi women' who lost out due to failures in communicating changes to the state pension age. The move comes weeks before a scheduled High Court legal challenge by campaigners.
Up to 3.6 million women born in the 1950s are affected. Last December, Chancellor Rachel Reeves sparked outcry by refusing payouts, prioritising public services over compensation that could cost up to £10.5 billion. This followed a March 2023 report from the Parliamentary and Health Service Ombudsman (PHSO) recommending compensation.
Work and Pensions Secretary Pat McFadden told the Commons on Tuesday that the government would 'retake' the decision, citing new evidence not previously considered by his predecessor Liz Kendall. However, senior Whitehall sources doubt the evidence will change the outcome but said the step was necessary due to impending legal action.
McFadden cautioned that retaking the decision 'should not be taken as an indication that government will necessarily decide that it should award financial redress.' The legal challenge, due to begin on 9 December, may still proceed depending on further developments.
The PHSO found the Department for Work and Pensions guilty of maladministration for its handling of the state pension age increase from 60 to 65 and then to 66, phased in between 2010 and 2020. Many women said they only discovered the change after retiring, leaving their financial plans in disarray.
Waspi chair Angela Madden called the announcement 'a major step forward' and said the group is seeking legal advice on its implications for the judicial review.
