The UK government’s decision not to compensate 3.6 million women affected by the state pension age rise from 60 to 65 has sparked renewed legal threats.
Campaigners from the Women Against State Pension Inequality (Waspi) group have warned the government of impending High Court action unless it reconsiders its stance.
Issue
The controversy dates back to the 1995 Pensions Act, which aimed to equalize the retirement age for men and women. Initially, the changes were set to be phased in over ten years from 2010, but a 2011 law accelerated the timeline, bringing the new pension age into effect by 2018 and later increasing it to 66 by 2020.
While these reforms were introduced as a cost-saving measure, many affected women were not properly informed about the changes. Some claim they received official letters only 14 years after the legislation was passed, leaving them financially unprepared for delayed retirement.
Government’s Stance
In December 2023, the government rejected calls for compensation, despite an Ombudsman report confirming maladministration in how the changes were communicated.
The recommended compensation package was estimated at £10.5 billion, but Prime Minister Sir Keir Starmer stated that taxpayers could not afford such a significant payout.
A government spokesperson acknowledged a 28-month delay in notifying affected women but argued that most were aware of the changes by 2006.
The statement emphasized that earlier notifications would not have significantly changed awareness levels and insisted that a compensation scheme was unjustifiable.
Campaigners
The Waspi campaign group has been fighting for justice for years, and following the government’s latest rejection, they have taken legal steps. On Monday, February 19, 2024, the group issued a “letter before action” to the Department for Work and Pensions (DWP), warning of a High Court challenge if the decision is not reversed.
Angela Madden, chair of Waspi, strongly criticized the government’s response, stating:
“The government has accepted that 1950s-born women are victims of maladministration, but it now says none of us suffered any injustice. This is not only an outrage but legally wrong.”
She added that the Waspi group remains confident in its legal case but urged the new Pensions Secretary, Liz Kendall, to engage in discussions and negotiate a fair compensation package instead of fighting a costly court battle.
Legal Route
To fund its legal action, the Waspi group has launched a £75,000 CrowdJustice campaign and given the government 14 days to respond before proceeding with court filings.
If the case reaches the High Court, it could force the government to reconsider compensation or at least provide further justification for its decision.
Political Reactions
While in opposition, several Labour MPs, including Rachel Reeves and Liz Kendall, publicly supported the Waspi campaign.
- In 2016, Rachel Reeves (now Chancellor) called the situation an “injustice” and urged the government to rethink its approach.
- Liz Kendall, now Pensions Secretary, also previously backed the campaign.
However, now in government, Labour leaders have sided with Starmer’s stance that compensation is too expensive.
The Bigger Picture
The accelerated pension age changes, introduced under the 2011 Pensions Act, were designed to save the government around £30 billion. However, the impact on thousands of women who were not adequately informed has led to financial hardship and widespread anger.
The Waspi campaign’s latest legal action could mark a turning point in the battle for compensation. If successful, it may force the government to revisit its stance and provide redress for those affected.
For now, all eyes are on the DWP’s response—and whether it will face a legal showdown in court.
FAQs
Who are the Waspi women?
They are 1950s-born women affected by the state pension age increase.
Why are Waspi women seeking compensation?
Many claim they were not properly informed about the pension age rise.
How much was the recommended compensation package?
The Ombudsman suggested a £10.5 billion payout, which was rejected.
What legal action is Waspi taking?
They have sent a legal warning to the government and may file a case.
How is the Waspi campaign funding legal action?
They have launched a £75,000 CrowdJustice fundraiser.