2,000 women in Isles lose hope of pension payouts

Around 2000 women in the Western Isles – most of whom will be pensioners already affected by the abolition of the winter heating payments – have now been left thousands of £s short because the Westminster Labour Government has decided to reject an ombudsman's ruling relating to maladminstration. 

Now SNP MSP for Na h-Eileanan an Iar Alasdair Allan has joined campaigners in their condemnation of the UK Government following their announcement today (Tuesday December 17) that they will reject any compensatory payouts to women who missed out on pension increases.

The 1995 Pensions Act increased the state pension age for women from 60 to 65 in order to equalise the age with men, with the change to be phased in over ten years from 2010 for women born between 1950 and 1955.

This transition was later speeded up by the 2011 Pensions Act.  Both the 1995 and 2011 changes came as a shock to many, with women discovering too late that they would have to wait up to six years longer for their state pension, affecting their retirement plans.  In 2015, Women Against State Pension Inequality was formed by five women to argue for the Government to provide transitional payments to women born in the 1950s receiving their pension after the age of 60.

It is believed some 3.6 million women born in the 1950s in the UK were not correctly or directly informed of the rise in state pension age. Whilst in Opposition, Labour supported an independent review to compensate those affected.  However, the Labour government is arguing they should have known they would be affected.  

Work and Pensions Secretary, Liz Kendal today announced that Labour will now reject any compensatory payout. She simply apologised for a 28-month delay in sending letters. Nine months ago, a parliamentary ombudsman recommended compensation of between £1,000 and £2,950 to each of those affected.

Liz Kendall said: ""Given the vast majority of women knew the state pension age was increasing, the government does not believe paying a flat rate to all women at a cost of up to £10.5bn would be fair or proportionate to taxpayers."

The decision has been described as an insult by some campaigners following the Minister making the claim today that most women “knew” the state pension age was increasing and therefore it would not be fair to compensate them.

Alasdair Allan commented: “With just over a week to go until Christmas, this was a shameful decision by Labour for the near 2000 WASPI women who live in the Western Isles.

“The independent ombudsman couldn’t have been clearer on the need to compensate these hard-working women. It’s simply shameful for Labour ministers to come to the House of Commons and ignore these clear recommendations.

“Sadly, under Section 28 of the Scotland Act (2016) the UK Government prohibits the Scottish Government from mitigating this injustice for WASPI Women in Scotland. However, both myself and other SNP MSPs and MPs will continue to campaign for these women who have been passed over by the Tories and now Labour.

“Despite being elected on a manifesto of ‘change’, this appears to be yet another Labour-dealt blow to our pensioners. I urge Scottish Labour MPs, should they have any influence, to argue against this unjust decision.”