The increase in the state pension age for women, rising to 65 by November 2018 and subsequently to 66 by October 2020, has ignited a storm of controversy. This change has left many women, who had long planned their retirements with the expectation of receiving their pensions at 60, grappling with financial chaos. The delay in communication about this significant adjustment has only fueled their frustration.
The alteration in pension age meant that some women faced an unexpected delay of four, five, or even six years in receiving their pensions. Many had based their financial plans on the long-standing expectation of retiring at 60. However, the government's failure to inform them promptly exacerbated their plight. It was not until between 2009 and 2013, a full 14 years after the law was passed in 1995, that the Department for Work and Pensions (DWP) began sending letters to those affected about the changes introduced in both 1995 and 2011.
The Parliamentary and Health Service Ombudsman (PHSO) has been deeply involved in investigating this issue over the years. The final report from the PHSO highlighted that "thousands of women may have been affected" and are entitled to compensation. This sentiment was echoed by campaigners who demanded payouts exceeding £10,000 per individual.
The Liberal Democrats expressed strong disapproval of the decision not to award compensation, labeling it as a "day of shame" for Labour. The Department for Work and Pensions' handling of the changes was found guilty of maladministration in an initial report released in 2021. Subsequently, the PHSO's final report recommended compensating those impacted by these changes.
The cost of compensating the over 3.5 million women born in the 1950s at the recommended level of £1,000 to £2,950 each is estimated to range between £3.5 billion and £10.5 billion. However, Chancellor Rachel Reeves has stated that enhancing public services takes precedence over allocating billions for compensating the Waspi women. Ministers argue that a blanket compensation scheme costing up to £10.5 billion cannot be justified given the current state of public finances.
The term "Waspi women" refers to the group of women affected by the increase in state pension age who have been fervently campaigning for compensation. Steve Webb, among others advocating for these women, has vocally criticized the government's stance.
“MPs should not take this decision lying down.” – Steve Webb
The Waspi campaign has gained significant traction as it challenges what many see as an unfair treatment of a large segment of women who contributed to the workforce with a certain expectation about their retirement age. The lack of timely communication from the government has added insult to injury for these women who now face unexpected financial burdens.
The PHSO's findings have become a pivotal point in this ongoing debate, with recommendations for compensation bringing hope to many affected individuals. Yet, the government's reluctance to commit financial resources towards this cause remains a contentious issue.
Supporters of the Waspi women emphasize that this is not simply a financial issue but a matter of justice and fairness. They argue that these women were penalized by a system that failed to adequately inform them and provide them with enough time to make necessary adjustments to their retirement plans.