Women who lost out of thousands in Waspi pensions controversy told they won't get government compensation

For years women who lost out on thousands of pounds due to changes in the state pension rules have campaigned for compensation. Today, the Labour work and pensions secretary has said the government will not pay them, despite pledges from Wales' two most senior female politicians who told campaigners a UK Labour Government would "put this right".

In 2018, Eluned Morgan shared a picture on her then-Twitter page saying: "Great turn out to support the 1950s women and Waspi campaign fighting for justice. A Labour Gvmt [government] will put this right." She thanked Carolyn Harris, the Neath MP for "leading a great campaign".

In 2019, Jo Stevens, now the most senior Welsh voice in the cabinet put on her social media. "I'm so proud that a UK Labour Government will end the historic pension injustice".

The Parliamentary and Health Service Ombudsman (PHSO) said women born between April 1950 and April 1960 were “owed” money because increases in the state pension age, from 60 to 66, were not communicated properly.

Some women were notified of the change to their pension age less than a year before they had been expecting to retire at 60, which left them without enough time to adjust their savings plans, the ombudsman found. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here

The report also said the 3.6 million women affected - and an estimated 200,000 in Wales - should have received a letter informing them of the changes up to four years earlier than they did. Speaking today (December 17) work and pensions secretary Liz Kendall said the government accepted the ombudsman’s findings of maladministration and apologised to 1950s born women for a 28 month delay in writing to them but she ruled out compensation payouts.

Ms Kendall said most women knew the state pension age was increasing, and argued that the failure to send out letters wasn’t “as significant as the ombudsman says”.

She added: "The alternative put forward in the report is for a flat rate compensation scheme, at level four of the Ombudsman’s scale of injustice, this would provide £1,000 to £2,950 per person at a total cost of £3.5 billion and £10.5 billion. "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 £10.5 billion would be fair or proportionate to taxpayers."

Prime Minister Sir Keir Starmer said he understood the concern of the Waspi women, but had to take into account whether it was right "to impose a further burden on the taxpayer".

There are various campaign groups, including the Women against State Pension Inequality campaign (Waspi). In 1995, plans to increase the state pension age for women were put forward which said the state pension age for women would rise to 65 slowly between April 2010 and April 2020.

Then, in 2011 the coalition Government announced that the timetable would be sped up, with women’s State Pension age rising to 65 by November 2018. By October 2020, men and women’s pension age would rise to reach 66 by October 2020 meaning any woman born on or after April 6, 1951, had seen changes to their pension. Campaigners say that it means women are having to work longer and many are having to take on physically demanding jobs which is impacting their health. You can read some of their stories here.

They argued that some of those affected never received letters to warn them, some receives a year’s notice and some of those letters came 14 years after the 1995 announcement and women were given as little as one year’s notice of up to a six year increase to their State Pension Age, compared to men who received six years notice of a one year rise. Campaigners say a one year difference in birthday can make an almost three year difference to state pension age.

The women have had cross party support in Wales, with events held by Labour MPs Tonia Antoniazzi, Carolyn Harris and Anna McMorrin and Plaid Cymru's Liz Saville Roberts.

Plaid Cymru Work and Pensions spokesperson, Ann Davies MP said: "Today, the UK Labour Government confirmed they will not provide any financial compensation to the WASPI women, despite repeated promises. 1950s-born women deserve full and fair compensation for the failures of the UK Government. I call on the secretary of state for Wales and the First Minister to explain how their previous commitment to ending 1950s-born women’s pension injustice is consistent with the decision today to refuse any compensation. Many women across Wales will feel badly let down by Welsh Labour."

The work and pensions secretary said lessons would be learnt from what had happened. The government would develop an action plan to fix problems identified in the ombudsman's report, and set a clear notice of any future changes to the state pension age.

She said that future pension communications would also use "the most up to date methods" to contact those affected.

Ms Stevens declined to comment and referred us to Ms Kendall's statement. Mrs Morgan is yet to respond.

This interactive tool shows how many women in Wales are impacted: