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Waspi ruling: government will not pay compensation to women over state pension age reform
Campaigners call on parliament to intervene after government says compensation would not be a fair use of taxpayer money
Millions of women born in the 1950s affected by state pension age changes will not be paid compensation, the government has confirmed.
In March, a report from the Parliamentary and Health Service Ombudsman (PHSO) investigated complaints that the Department for Work and Pensions (DWP) failed to provide accurate, adequate and timely information about state pension reform.
It followed an ongoing campaign led by two groups: Women Against State Pension Inequality (Waspi) and BackTo60, who believe these women were robbed of their state pension when the retirement age was raised from 60 to 65, and then 66, in line with men.
Here, Which? explains the findings of the PHSO report, and why the government will not pay compensation.
What happened to the women's state pension age?
Until 2010, women received their state pension at age 60. A phased timetable saw the state pension age rise rapidly for women from 60 to 65 between 2010 and 2018.
These changes were first announced in the 1993 Budget and put into legislation in The Pensions Act 1995.
The state pension age then rose again to 66 for men and women between 2018-2020, and another increase is planned to 67 by 2028.
Campaign groups argue that many women born in the 1950s have lost out significantly and were not properly warned of the changes.
Around 3.6 million women were impacted as a result of changes and some of these women have suffered financially as a result.
- Find out more: state pension age calculator
What did the PHSO investigate?
The Ombudsman investigated complaints that since 1995 the DWP failed to provide adequate, accurate and timely information about state pension age reform. It did not investigate the legislation change itself.
The PHSO published stage one of its investigation in July 2021 which was focused around communication of state pension age changes.
It found the DWP was guilty of ‘maladministration’ over informing women of increases to their state pension age, and that women should have had at least 28 months’ more notice of changes than they did.
The PHSO's 2024 report looked at two more issues: how the DWP communicated National Insurance qualifying years information, and how DWP and the Independent Case Examiner (ICE) handled complaints.
What did the latest report find?
The PHSO looked at a sample of complaints to see if maladministration occurred, and if this led to injustice.
Communication over changes
The Ombudsman found failings in how DWP communicated information about National Insurance qualifying years.
This was due to the 2014 Pensions Act and the introduction of the new state pension, which changed the number of NI qualifying years needed to claim the full rate.
Research found too many people did not understand their own situations and how this affected them personally.
- Find out more: National Insurance and the state pension
Complaint handling
The Ombudsman found the DWP did not adequately investigate and respond to complaints about these issues.
There were also avoidable delays in its complaint handling. It did not find failings with ICE, which reviews complaints about certain government organisations.
Injustice and maladministration
When considering if injustice occurred, the PHSO also considered its findings from the stage one report.
It found failings in DWP’s communication about the 1995 Pensions Act negatively affected complainants' sense of personal autonomy and control over their finances. However, it said this did not result in direct financial loss.
The Ombudsman found DWP’s communication about NI qualifying years did not lead to an injustice for the sample complainants.
Failings in DWP’s complaint handling caused unnecessary stress and anxiety. It also meant there was a missed opportunity to reduce the complainant's distress. This also caused unnecessary confusion for some complainants.
- Find out more: how much state pension will you get?
What compensation was recommended?
The PSHO said looking at the sample of complainants’ cases, it would recommend a level four range of compensation.
This is between £1,000 and £2,950 to reflect a ‘significant and/or lasting injustice that has, to some extent’ affected someone’s ability to live a normal life.’
It also recommended the DWP provide a remedy to others who have suffered injustice because of the maladministration it has identified.
It said the DWP should acknowledge its failings and apologise for the impact it’s had on complainants and others similarly affected.
- Find out more: how much do you need to retire?
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Listen nowWhy won't the government pay compensation?
The DWP was not legally required to follow the PHSO’s recommendations, prompting it to take the unusual step of asking Parliament to assess the issue and consider compensation options.
Since the report’s release, there has been a general election and a change in government.
This week, work and pensions secretary Liz Kendall told MPs that while the Government accepted the PHSO’s findings and apologised for the maladministration, it would not provide compensation.
Kendall said: 'Given the great majority of women knew that the state pension age was increasing, the Government does not believe paying a flat rate to all women – at a cost of up to £10.5 billion – would be a fair or proportionate use of taxpayers’ money.'
The government emphasised research showing 73%-90% of women in the affected age group were already aware of the changes, arguing that earlier letters would not have significantly improved awareness.
Looking ahead, it pledged to improve communication, stating: 'We are committed to setting clear and sufficient notice of any changes in the state pension age so people can properly plan for their retirement.'
- Find out more: could the state pension age rise to 71?
What's next for the Waspi campaign?
The Waspi group is calling on Parliament to intervene and force a vote on the principle of compensation, stating that over 300 MPs back its campaign. It argues that the government’s refusal to act on the Ombudsman’s recommendations undermines the credibility of the watchdog, and has confirmed it is seeking fresh legal advice.
Waspi has also challenged Keir Starmer’s claim that '90% of women were aware of the changes,' stating this figure reflects only a vague awareness that state pension age changes might happen for others, rather than a clear understanding of their personal impact.
Angela Madden, Chair of Waspi, said: 'We are not giving up. Parliament must now seek an alternative mechanism to force this issue onto the order paper so justice can be done.'
- Find out more: the women battling the government for a fair state pension
How to check your state pension
A state pension forecast will provide you with an estimate of how much state pension you could get when you reach state pension age.
It will also show the number of qualifying years of contributions on your National Insurance record and any gaps.
- Find out more: how to check your state pension forecast
