UK Gov Responds to Report on Women's Pension Age Changes

• Following careful consideration of the PHSO's report into how changes to the State Pension Age were communicated, the Government has accepted the Ombudsman's finding of maladministration and has apologised for there being a 28-month delay in writing to 1950s-born women.
• Evidence showed only one in four people remember receiving and reading letters that they weren't expecting and that the great majority of 1950s-born women did know that the State Pension age was changing. Earlier letters wouldn't have affected this.
• For these and other reasons the government cannot justify paying compensation.

Following careful consideration of the PHSO's report into how changes to the State Pension Age were communicated, the Government has accepted the Ombudsman's finding of maladministration and has apologised for there being a 28-month delay in writing to 1950s-born women.

Evidence showed only one in four people remember receiving and reading letters that they weren't expecting and that the great majority of 1950s-born women did know that State Pension age was changing. Earlier letters wouldn't have affected this. For these and other reasons we cannot justify paying compensation.

In 2018, the PHSO launched an investigation to examine whether 1950s-born women suffered injustice because of maladministration in the DWP's communication of State Pension Age changes.

The Ombudsman did not investigate the change in the State Pension age itself - a policy change from 1995 which was agreed by Parliament and considered lawful by the courts - just how the change was communicated.

The Ombudsman found:

• DWP provided adequate and accurate information between 1995 and 2004;
• DWP decision-making between 2005 and 2007 led to a 28-month delay in starting to send letters to 1950s-born women about State Pension age changes and that;
• These delays were maladministration and the Ombudsman found they led to injustice but did not cause direct financial loss.

The Work and Pensions Secretary Liz Kendall, on behalf of the Government, has accepted the Ombudsman's finding of maladministration for there being a 28-month delay in writing to 1950s-born women and has apologised. The Secretary of State also committed to the department learning lessons from this complex case.

The Ombudsman concluded sending letters earlier would have affected what women knew about the changes to the State Pension age but these delays did not result in direct financial loss.

However, there is evidence on the ineffectiveness of unsolicited letters that the Ombudsman did not take properly into account. Research showed that only one in four people remember receiving and reading letters that they weren't expecting.

The government cannot therefore accept that sending letters earlier would have had a significant impact on whether women knew their State Pension age was rising or increased their opportunities to make informed decisions.

The Ombudsman also acknowledged that, throughout these years, DWP did make considerable efforts through its extensive communications campaigns - from helplines and leaflets to TV adverts and women's magazines - to raise awareness about the state pension age changes. The letters were just one part of this extensive communications campaign.

Published research, which is referenced by the Ombudsman in their report, also shows that 73% of women aged 45-54 said that they were aware of State Pension age increases in 2004. By 2006, 90% of 1950s-born women knew about State Pension age changes.

Therefore, the Government does not agree with the Ombudsman's approach to injustice and remedy, which has informed the conclusion that there should be no financial compensation to 1950s-born women.

A blanket compensation scheme, which could cost taxpayers up to £10.5 billion, cannot be justified when evidence shows 90% of women knew about State Pension age changes and letters would not have made a significant difference for those who were not aware.

It would also be impossible to deliver a tailored compensation scheme taking into account individual circumstances that is fair, value for money and feasible. The Ombudsman's report itself acknowledges the cost and administrative burden of assessing the individual circumstances of 3.5 million women born in the 1950s.

Such a scheme would also take thousands of staff many years and have a significant detrimental impact on DWP's core business of helping people back into work, supporting the poorest and most in-need households and supporting pensioners.

Even if there were a scheme where women were invited to self-certify that they weren't aware of changes to their State Pension age, and that they have suffered injustice as a result - it would be impossible to verify the information provided.

This has been a difficult decision and not one the government has taken lightly. The Government is continuing to support pensioners with millions set to receive up to a £1,900 increase to their State Pension by the end of this parliament through our commitment to the Triple Lock.

Speaking to the House, the Secretary of State Liz Kendall said:

The government has not taken this decision lightly, but we believe it is the right course of action…. because

the great majority of the women knew the State Pension age was increasing

sending letters earlier wouldn't have made a difference for most

and the proposed compensation scheme isn't fair, or value for taxpayers' money.

I know there are women born in the 1950s who want and deserve a better life.

They've worked hard … in paid jobs and bringing up their families. Many are struggling financially … with the cost of living, and fewer savings to fall back on.

And they worry about their health, and how their children and grandchildren will get on.

To those women I say, this Government will protect the pensions triple lock so that your state pension will increase by up to £1,900 by the end of this Parliament.

This government will drive down waiting lists, so you get the treatment you need, with an extra £22 billion of funding for the NHS this year and next.

And this government will deliver the jobs, homes and opportunities your families need to build a better life.

I know that - on this specific decision - many 1950s born women will be disappointed.

But we believe it is the right decision, and the fair decision.

Additional information on background to SPa changes

• In 1991, the Government consulted on options to equalise the State Pension age for men and women. Following the consultation, Parliament legislated for equalisation at age 65 in the Pensions Act 1995. The subsequent Pensions Acts 2007 and 2011 raised both men's and women's State Pension age. The increase in women's State Pension age and accelerated the timetables for the increased. The increase in women's State Pension age was accelerated to reach 65 by November 2018 and would rise to 66 in October 2020.

Chronology of State Pension age communications activities 1991-2013 - highlights

1991

Green paper: "Options for Equality in State Pension age" Public consultation on the policy rationale which received 4000 responses

1993

White paper: "Equality in State Pension age" - Set out the Government's intention to equalise men and women's State Pension age at 65. Leaflet (EPQ1): "Equality in State Pension age - A summary of the Government proposals". - Pre-empted 1995 Act and informed individuals about the changes to State Pension age Poster for Social Security Offices - Included a telephone number to request EPQ1

1995

DSS Pension order-line set up Leaflet (EQPLA): "Equality in State Pension age - A summary of the changes". - Informed individuals about the State Pension age changes, the specific impact on women, and included a table showing date of birth and proposed new SPa. Republished in 1996.

State Pension Forecast - Requested by post and telephone (and recently online).

1996

Booklet (EQP201): "Changes to your future - Will the Pensions Act affect your State Pension?" - Provided an overview of the Pensions Act 1995 and its implications. |

1997

Pension Power pilot campaign - Trade Union Congress led campaign and helpline aimed at women

1997

Pensions Education Working Group (1997-2000) - Stakeholders included Trade Union Congress, Natwest, Equal Opportunities Commission. - Produced a report called 'Getting to know about Pensions' which recommended that the Department "should develop a major pensions educations and awareness programme."

1998

Multi-channel Pensions Education Campaign - Encouraged ownership of pensions stating 'don't leave it to chance'. - Approach included press, adverts, leaflets about SPa changes directed at women, a website (www.gogetpensions.gov.uk) and direct mailings to 75,000 individuals. DWP received 1.5 million requests for information leaflets (including from 8000 organisations)

1999

Pension Power for You campaign - Trade Union Congress led helpline promoted through radio and press. - Received 6500 calls in the first 5 days, of which 56% were about State Pension.

2000

1998 Multi-channel Pensions Education Campaign (extended) - Approach included press, TV, women's magazines

2001

New multi-channel Pensions Education Campaign - Encouraged retirement planning. - A creative approach worth £6.5m including leaflets, TV advertisements, cinema and supported by stakeholders. - 1 million website visits, 2 million guides were issued, and 430,000 calls to the helpline. Leaflet (PM2) - Updated to include reference to SPa. Website - Included SPa checker.

2003

Automatic Pensions Forecasts - Including a booklet notifying women about increases to SPa, guide to State Pension and planning for retirement. - Approximately 17.8 million sent to individuals between 2003 and 2006.

2004

Range of Pension Service booklets updated to include references to SPa changes. Booklets were available through telephone request, and from the Pension's website.

2006

Public consultation - National Pensions debate

2008

Marketing activity aimed at women -Included TV adverts

2009 to 2011

Direct mailing - Letters to all individuals affected by the Pensions Act 1995 using postal address held on DWP's customer information system. - 1.2 million letters sent to women.

2012 and 2013

Direct mailing - Letters to all individuals affected by the Pensions Act 2011. - 5 million letters and information leaflets.