Dear Constituent,
Thank you for contacting me about the impact of State Pension Age (SPA) equalisation on women and the investigation by the Parliamentary and Health Service Ombudsman (PHSO), whose findings were presented to the previous Government on 21 March 2024.
I have been a long-time supporter of the WASPI Women I must admit I am disappointed in the government’s response. I will first outline their position and then my own.
It is important to note that the investigation was not into the SPA equalisation itself, but into how that change was communicated. Nevertheless, I understand that the accelerated timescale in the Pensions Act 2011 impacted many women. I note that, at the time that Act was being debated in Parliament, Ministers in the then coalition Government refused to introduce fair transitional arrangements to protect women born in the 1950s.
The Government fully accepts the Ombudsman’s findings that previous administrations committed maladministration when it came to communicating the change in the SPA. It has, therefore, rightly apologised. However, given that most women knew the SPA was increasing, the Government does not believe that paying a flat rate of compensation, at a cost of up to £10.5 billion, would be a fair or proportionate use of taxpayers’ money. The Government is clear that this has been an extremely difficult decision to take but that it is the right course of action, as current circumstances cannot be ignored. This includes the fact that the previous Government failed to set aside a single penny for any compensation scheme while leaving a significant black hole in the public finances that needed to be filled.
The Government recognises that 1950s-born women will be deeply disappointed by the lack of compensation. However, they would respectfully reject any notion that the they are not committed to supporting women in retirement. The new State Pension will increase by more than £470 a year in April 2025, thanks to the triple lock. The Government will also maintain the triple lock by spending £31 billion over the next five years, money that will help protect pensioners in retirement.
This is an area where I differ from the Government, however. Shortly after the announcement I spoke to the Mirror to express my deep sadness at the government’s response. All of us who stood alongside the WASPI women in their campaign knew when we supported them, that the costs were substantial. Many of us feel the reason for that is because the injustice done to them is substantial. It cannot be a reason now to abandon a solution.
More widely, I know that lessons must also be learnt from what has happened over recent decades to ensure everyone can properly plan for their retirement. I believe that information about any future changes to the SPA should be communicated in a timely and targeted way.
Thank you for contacting me on this issue.
Yours sincerely,
Barry Gardiner