The UK government appears to be willing to reverse its initial position. This impacts an estimated 3.6 million women born in the 1950s who claim the state pension age increases have negatively impacted their lives. The DWP used these reasons in December 2023 to reject compensation for these women. Ongoing shifts in the situation caused the government to do an about-face.
For some 66 years, the state pension age for women was set at 60. However, major transformations started in the mid-1990s. In 1995, lawmakers adopted legislation to gradually increase the retirement age to 65 with the increase phased in between 2010 and 2020. Despite some initial hesitations, in 2011 the coalition government accelerated the speed of change. They did this by raising the state pension age from 60 up to 65, and then 66.
Most women affected by these changes say they weren’t properly notified about the changes. Numerous individuals stated that they had planned their finances based on the expectation of receiving their pensions at age 60. Many only learned about the increase in their pension age after they had formally entered retirement.
In 2015, the Women Against State Pension Inequality (Waspi) campaign started. Through our series we hope to be a voice for the people who are affected by these shifts. The group maintains that the DWP’s response to the introduction of a higher pension age was a maladministration. The PHSO carried out a detailed, systemic investigation. Yet they determined that the DWP grossly mishandled the changes and recommended compensation accordingly.
The PHSO’s investigation recommended that the women impacted be given compensation from a minimum of £1,000 and up to £2,950 per woman. This recommendation highlights an anticipated fiscal burden for the federal government. All in, estimates of total payouts run anywhere from £3.5 billion to £10.5 billion.
In December 2023, Chancellor Rachel Reeves indicated that improving public services took precedence over committing funds to these potential payouts. This statement led to one of the biggest coordinated pushbacks in history, consisting of advocacy groups and people directly affected.
“Today’s announcement is a major step forward. We are seeking legal advice as to what this means for our judicial review.” – Angela Madden, chair of Waspi
The government has heeded the public outcry over its original decision. Now, U-turn again, it will look again at its position on compensation for Waspi women. Administration officials stressed that going back on the decision does not mean any financial compensation would be provided.
“Retaking this decision should not be taken as an indication that government will necessarily decide that it should award financial redress.” – He
Pressure is mounting on the government to appease the aggrieved communities/angry diaspora. Most see this as a communication failure on the part of the government to explain the planned pension age increases leading to the reversal. These minor shifts could go a long way toward empowering a generation of women to change their respective fields. More often than not, they believe the system has wronged them.
Advocates for Waspi women are still hopeful as talks continue. They’re hopeful this latest test will yield a positive result for all those who have endured great financial losses from pension policy reversals.