WASPI women were owed compensation by DWP, according to landmark report – should you pay cash?
THOUSANDS of women are owed compensation by the government, a landmark report has revealed.
Official findings published today by an ombudsman have called for compensation for WASPI women over DWP’s “shortcomings”.
The Parliamentary and Healthcare Ombudsman released the report following an investigation into potential injustices resulting from raising the retirement age for women in line with that of men.
Those affected are called WASPI (Women Against State Pension Age Inequality) and are those who saw their retirement age rise from 60 to 65.
These women were born in the 1950s and were told they would have to wait longer for their pension money when changes to the state pension age accelerated in 2010.
The ombudsman published the first phase of his report in 2021, which criticized the government for being too slow to inform women about the consequences of the age change.
It has now published the second and third parts of its investigation, which address these communication errors and recommendations on compensation.
To date, the Department for Work and Pensions (DWP) has not acknowledged its failings or put matters right for the women affected, the report said.
The Ombudsman has now asked Parliament to intervene, saying it must “act quickly” and ensure a compensation scheme is put in place.
Rebecca Hilsenrath, director of the Parliamentary and Healthcare Ombudsman, said: “The UK National Ombudsman has identified DWP’s failings in this case and has ruled that the women affected are owed compensation.
“DWP has clearly indicated that it will refuse to comply. This is not acceptable. The department must do the right thing and be held accountable if it does not do so.
“Complainants do not have to wait to see whether DWP will take action to correct its shortcomings.”
Legally, the Ombudsman cannot recommend that the government reimburse women for the full pension amount they have not received.
However, it may recommend that at least some of those affected receive payments of £10,000 or more, although it is not yet known how a compensation scheme would work.
It can be difficult to figure out who actually qualifies for the money, and so far nothing has been guaranteed by the government.
Some critics have said that a blanket payment scheme would fail to distinguish between people who knew their state pension age was rising and others who had not been properly contacted by the DWP and suffered as a result.
It would also be quite expensive, costing the government billions of pounds.
Others do not believe the £10,000 figure would be enough for some who believe they have lost much more.
The DWP has been contacted for comment.
Who are WASPI women?
WASPI women refers to an estimated 3.8 million women born in the 1950s who have been severely affected by a change in the state pension age from 60 to 65.
The abbreviation stands for Women against inequality in state pensions.
The women represented were born between April 6, 1950 and April 5, 1960.
Until 2010, women could claim their state pension from the age of 60, and men from the age of 65.
But from 2010 to 2018, the retirement age for women was gradually increased from 60 to 68, bringing it in line with the state pension age for men.
The women affected say the changes were made with little notice, leaving them without enough money.
This shake-up was introduced by successive governments in 1995, 2007 and 2011 to bring women’s state pension age on par with men’s and to take into account the fact that people are both living and working longer.
Angela Madden, chair of the WASPI campaign, previously told The Sun: “More than 260,000 WASPI women have died since the campaign began and this tragic statistic reaffirms the urgent need for justice for all those affected, following the repeated failures of the DWP and subsequent governments of all colours.”
What is the WASPI campaign?
The WASPI campaign was set up in 2015 to help people affected by the change in the state pension age.
Campaigners say they agree with the equal retirement age for men and women and are not calling for a return to the previous retirement age.
But they say they do not accept the unfair way in which the changes to the state pension age have been implemented ‘inadequately’ or ‘without notice’.
Many women had made life plans based on when they thought they would retire.
When this was subsequently postponed, they ran into financial problems because they had to wait extra years for their pension.
Millions of women were suddenly faced with unemployment, zero-hour contracts and a loss of independence, according to the group.
Among the hardest hit were the 300,000 women born between December 1953 and October 1954, who had to wait another eighteen months before they could retire.
How does the AOW work?
Currently, the current state pension is paid to both men and women from the age of 66, but is expected to rise to 67 in 2028 and to 68 in 2046.
The state pension is a recurring payment from the government that most Britons receive once they reach state pension age.
But not everyone gets the same amount, and you will be rewarded depending on your national insurance details.
For most retirees it only forms part of their retirement income as they can get other pots from a workplace pension, earnings and savings.
The new state pension is based on people’s national insurance data.
Workers must have 35 qualifying years of National Insurance to receive the maximum amount of the new state pension.
You earn qualifying years for National Insurance by working or getting credit, for example when you care for children and claim child benefit.
If you have gaps, you can supplement your file by paying voluntary national insurance contributions.
To receive the old, full basic pension, you need 30 years of contributions or credits.
You need at least 10 years on your NI record to receive a state pension.
What compensation is proposed and what is the likelihood that it will be paid?
Over the years, many MPs have supported the WASPI campaign, but ministers have repeatedly ruled out any form of concession to those affected.
This included compensation to bridge the gap between the change in the state pension age or a one-off payment.
In February, MP Alan Brown introduced a bill calling for a compensation scheme with payouts of at least £10,000 to help those affected.
However, the bill is not a certainty and cannot be adopted by parliament.
Ms Madden said at the time: “We have been working closely with Alan Brown MP and are grateful for his support in our ongoing fight for fair and speedy compensation.
“The figure of £10,000 is in line with the findings of the cross-party APPG for State Pension Inequality for Women, which concluded that the figures set out in the Ombudsman’s level 6 compensation scale are both necessary and proportionate.”
The second reading of the state pension age (compensation) bill was scheduled for Friday, April 19, but it is unlikely to pass parliament without government support.
This means that the cash payouts are far from guaranteed, but we will keep you informed of any changes.
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