DWP to 'carefully consider' WASPI compensation in new State Pension probe update

WASPI campaigners at a rally in London in June 2023 as a new update was issued by the DWP ahead of a final report into the pension change complaints

The Department for Work and Pensions says it will “carefully consider” recommendations made in a final report on the WASPI investigation. The Parliamentary and Health Service Ombudsman will include suggestions for any potential compensation that should be paid to women affected by changes to the State Pension age.

The DWP has already been found guilty of maladministration in a Stage 1 report but the ombudsman’s Stage 2 report has had to be rewritten after a legal challenge by the Women Against State Pension Inequality (WASPI) campaign. This year a revised Stage 2 report (on whether there was injustice) and the Stage 3 report (looking at any financial remedy) are expected to be delivered – and may be combined into a single document outlining any action the Government should take to rectify the matter.

Pensions Minister Paul Maynard has issued a new update this week after being asked about the issue of compensation for the 3.6 million 1950s-born women affected by lack of notification that their pension age had gone up.

The 1995 Conservative Government’s State Pension Act increased the State Pension age for women from 60 to 65 so that it was the same as that for men and then the 2011 Pension Act put up the State Pension age to 66 for both men and women. But many women say they weren’t given enough notice and had to wait up to six more years before being able to claim their pension.

Alistair Strathearn, Labour MP for Mid Bedfordshire, asked the DWP “what recent assessment he has made of the potential merits of compensating women born in the 1950s affected by changes to State Pension age legislation”, the Daily Record reported.

DWP Pensions Minister Paul Maynard, the Conservative MP for Blackpool North and Cleveleys, responded: “The ombudsman is considering this matter, he has not completed his final report and has yet to make any recommendations. When the report is complete the Government will carefully consider it.

“It would not be appropriate to comment on the investigation and section 7(2) of the Parliamentary Commissioner Act 1967 states that ombudsman investigations ‘shall be conducted in private.'”

Provisional versions of the Stage 2 and 3 reports were expected to have been issued at the end of last year with comments due back from all parties involved by January 19 before the final versions are published.

The ombudsman said: “The 1995 Pensions Act and subsequent legislation raised State Pension age for women born on or after April 6, 1950. Women complained to us that DWP did not adequately communicate these changes. They say they have experienced financial loss and a negative impact on their health, emotional well-being or home life as a result.

“They also complained that they suffered financial loss due to DWP inadequately communicating how many National Insurance qualifying years they need for a full State Pension. They told us that DWP’s and ICE’s (Independent Case Examiner) handling of their complaints about these issues had a negative effect on their emotional well-being.

“Stage 1 of our investigation found that between 1995 and 2004, DWP’s communication of changes to State Pension age reflected the standards we would expect it to meet. But in 2005, DWP failed to make a reasonable decision about targeting information to the women affected by these changes. That was maladministration. In 2006, DWP proposed writing to women individually to tell them about changes to State Pension age but it failed to act promptly. That was also maladministration. “

It added: “Our investigation has been complex, and it has taken a considerable amount of time. We appreciate the impact this will have had on the women affected. There have been many delays outside of our control.

“We have granted five extensions to allow involved parties additional time to consider our views and provide comments, and following the legal challenge, it was only right that we looked again at part of our Stage 2 report. We have carefully analysed over 650 pieces of evidence over the course of our investigation to make sure any findings are robust and evidence based.

“As an independent Ombudsman, our duty is to provide the right outcome for all involved and make sure justice is achieved. The cooperative approach we have taken to looking again at injustice will provide the quickest route to remedy for those affected.”

And on the issue of potential compensation, it stated: “When we find an injustice was suffered as result of maladministration, we make recommendations which might include compensation is paid. To decide how much compensation to recommend we refer to our guidance about financial remedy (including our Severity of Injustice scale) and take account of relevant precedents.

“The Severity of Injustice scale contains six different levels of injustice that a complaint could fall into. Each level includes a range of amounts of compensation we would usually recommend in those circumstances. For example, compensation for a Level 3 injustice would fall within the range of £500-£950.”

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