Tens of thousands of women are owed compensation by the government, a landmark report has found.
Official findings released today by the ombudsman call for compensation for WASPI women due to “failures” by the DWP.
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Campaign group WASPI believes the government has wronged womenCredit: PA: Press Association
The Parliamentary and Health Ombudsperson (PHSO) issued a report following an investigation into possible injustices arising from raising the retirement age for women in line with the age for men.
The affected people are called WASPI (Women Against State Pension Age Inequality) and are those who have seen the pension age increase from 60 to 65.
These women were born in the 1950s and were told they would have to wait longer for their pension when changes to the state pension age were accelerated in 2010.
The watchdog published the first phase of its report back in 2021, criticizing the government for being too slow to inform women how the age change will affect them.
It has now published parts two and three of its investigation, which deal with those communication failures and compensation recommendations.
The 100-page report suggests the compensation could be between £1,000 and £2,950 per person – a level four on the unfairness scale.
The PHSO told The Sun it estimates tens of thousands of women need to pay compensation.
Campaign group WASPI previously called for each woman affected to be paid between £10,000 and £20,000 (level six) to make up for lost pension payments.
To date, the Department for Work and Pensions (DWP) has failed to admit its failings or put things right for the women affected, the report said.
The ombudsman has now asked parliament to intervene, saying it “needs to act quickly” and ensure a compensation scheme is established.
The report also said that based on what the pensions department told its authors during the investigation, the ombudsman had “high doubts about providing a remedy”.
It is therefore important to bear in mind that the payout is far from guaranteed and there is currently no scheme in place.
The chief executive of the Parliamentary and Health Ombudsman Service, Rebecca Hilsenrath, said: “The UK’s National Ombudsman has identified DWP’s failings in this case and has ruled that the women affected are owed compensation.
“The DWP have made it clear they will refuse to comply. This is unacceptable. The department must do the right thing and must be held accountable for its failure.
“Claimants should not wait and see if the DWP takes steps to correct its failings.”
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Legally, the watchdog cannot recommend that the government compensate the women for the full amount of the pension they did not receive.
However, it may recommend that at least some of those affected receive payments, although it is not yet known how any compensation program would work.
It could be difficult to determine who is actually entitled to the cash, and the government has so far made no guarantees.
Some critics said the blanket payment scheme would not be able to distinguish between people who knew their state pension age was rising from others who were not properly contacted by the DWP and suffered as a result.
It would also be quite expensive, running into billions of pounds for the government.
A DWP spokesman said: “We will consider the ombudsman’s report and respond in due course, as we have co-operated fully throughout this investigation.
“The government has always been committed to supporting all pensioners in a sustainable way that allows them to retire with dignity, while being fair to them and the taxpayer.
“The State Pension is the bedrock of retirement income and will remain so as we get a further 8.5% rise in April, which will increase the State Pension for 12 million pensioners by £900.”
Who are the WASPI women?
WASPI women refers to the estimated 3.8 million women born in the 1950s who were hit hard by the change in the state pension from 60 to 65.
The acronym stands for Women Against State Pension Inequality.
The presented women were born between April 6, 1950 and April 5, 1960.
Until 2010, women could claim a state pension from the age of 60, and men from the age of 65.
However, from 2010 to 2018, the retirement age for women gradually increased from 60 to 68, bringing it into line with the state pension age for men.
The women affected say the changes were implemented without notice, leaving them without sufficient resources.
The reform was introduced by successive governments in 1995, 2007 and 2011 to bring women’s state pension age in line with men’s and to take into account the fact that people are living and working longer.
Angela Madden, president 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 repeated failures by the DWP and successive administrations of all colors.”
What is the WASPI campaign?
The WASPI campaign was launched in 2015 in an attempt to help those affected by the change to the state pension age.
Campaigners say they agree with an equal retirement age between 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 changes to the state pension age were implemented with “inadequate” or “no notice”.
Many women made life plans based on when they thought they would be able to retire.
When it was then withdrawn, it left them financially strapped as they waited extra years to receive their pension.
Millions of women suddenly faced unemployment, zero-hours contracts and a loss of independence, according to the group.
Some of the hardest hit were the 300,000 women born between December 1953 and October 1954, who had to wait an extra 18 months before they could retire.
How does the state pension work?
CURRENTLY, the current state pension is paid to both men and women from the age of 66 – but it is due to rise to 67 by 2028 and 68 by 2046.
The State Pension is a regular payment from the government that most Britons start receiving when they reach State Pension age.
But not everyone gets the same amount, and you get a reward based on your National Insurance record.
For most retirees, this only makes up part of their retirement income, as they might have other income from work pensions, earnings and savings.
The new state pension is based on people’s national insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You gain National Insurance qualifying years by working or getting credit, for example when you look after children and claim Child Benefit.
If you have deficiencies, you can supplement your seniority by paying voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
What compensation is proposed and how likely is it to be paid?
A report published today recommends that those affected be paid between £1,000 and £2,950.
This is because the ombudsman determined that it was a “significant and/or permanent injustice that to a certain extent affected someone’s ability to lead a relatively normal life”.
Over the years, many MPs have supported the WASPI campaign, but ministers have repeatedly rejected any concessions to those affected.
This includes a gap allowance between changing their state pension or a lump sum payment.
In February, MP Alan Brown introduced a bill calling for a compensation scheme with payments of at least £10,000 to help those affected.
However, the bill is not a sure thing and cannot pass through parliament.
Ms Madden said at the time: “We have worked closely with Alan Brown in Parliament and are grateful for his support in our continued fight for fair and prompt compensation.
“The £10,000 figure is in line with the findings of the cross-party APPG on State Pension Inequality for Women, which concluded that the figures set out in the Ombudsman’s level 6 remuneration scale are necessary and proportionate.”
The second reading of the draft Old Age Pension (Compensation) Bill has been announced for Friday, April 19, but it is unlikely to pass parliament without government support.
This means cash payouts are far from guaranteed, but we’ll keep you posted on any changes.
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Source: HIS Education