Ministers have again refused to pay compensation to women affected by changes to the state pension age, triggering renewed anger from campaigners who say millions were left in the dark about reforms that upended their retirement plans.
The government revisited the issue after a previously unseen document emerged, but concluded once more that compensation was neither justified nor affordable. Campaigners argue that around 3.6 million women born in the 1950s were not properly informed about the increase in the state pension age, which was equalised with men’s.
The Women Against State Pension Inequality (Waspi) said the latest decision showed “utter contempt” for those affected.
Angela Madden, chair of Waspi, (pictured) said: “The government has kicked the can down the road for months, only to arrive at exactly the same conclusion it always wanted. This is a disgraceful political choice by a small group of very powerful people who have decided the harm suffered by millions of ordinary women simply does not matter.”
The government maintains that the majority of women affected were aware that the state pension age was rising, citing years of public information campaigns through leaflets, GP surgeries, television, radio, cinemas and online channels. However, many women say they only discovered the changes late in life, leaving them with little time to adjust financially.
In 2024, the Parliamentary and Health Service Ombudsman recommended compensation of between £1,000 and £2,950 for affected women, after finding maladministration in how changes were communicated. While the Ombudsman can make recommendations, it cannot compel the government to act, and ministers previously rejected the proposal.
Speaking in the House of Commons, Pat McFadden said the government accepted that letters notifying women of the changes “could have been sent earlier”, repeating an apology previously made by Liz Kendall.
However, McFadden said ministers also agreed with the Ombudsman’s earlier conclusion that the delay did not result in “direct financial loss”. He added that evidence suggested most women would not have read “an unsolicited pensions letter”, even if it had arrived sooner, and that those least informed about pensions were also least likely to engage with such correspondence.
The latest review was prompted by the discovery of a 2007 survey that had not been shared with ministers during earlier deliberations. McFadden said officials had since checked that no other relevant documents had been overlooked.
In a statement, the government said a flat-rate compensation scheme could cost up to £10.3bn and would be unfair because it would apply to many women who were already aware of the changes. More targeted individual compensation, it added, would be impractical to administer.
Opposition politicians criticised the decision. Liberal Democrat work and pensions spokesperson Steve Darling said affected women would feel “utterly betrayed”.
“False hope was given to them in the autumn, and that hope has now been dashed,” he said.
The renewed rejection is likely to intensify pressure on ministers, with campaigners warning the issue will not go away and that trust in the pensions system has been severely damaged.
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Ministers again reject Waspi compensation claims after fresh review