Blow to Waspi women as Labour rejects demands for state pension compensation package

Mr McFadden apologised that women born in the 1950s were not sent individual letters about their state pension changes earlier, but revealed will not receive compensation as a result of communications problems.

He told MPs: “There are legitimate and sincerely held views about whether it was wise to increase the state pension age, in particular, whether the decision taken in 2011 by the coalition government to accelerate equalisation and the rise to the age of 66 was the right thing to do or not.”

Howver, the DWP minister cited that the issue of compensation is based on “how changes to the state pension age were communicated", not past policy decisions, the minister said.

He added: "We accept that individual letters about changes to the state pension age could have been sent earlier. For this, I want to repeat the apology that (former work and pensions secretary Liz Kendall) gave on behalf of the Government.

"And I am sorry that those letters were not sent sooner. We also agree with the (Parliamentary and Health Service) ombudsman that women did not suffer any direct financial loss from the delay.”

Waspi campaigners have lobbied consecutive Governments for redress following the state pension age equalisation between men and women, which impacted an estimated 3.8 million women.

Many women born in the 1950s argue they were not adequately informed of the changes, which saw the retirement age for women rise from 60 years to in line with men.

In 2024, the Parliament and Health Service Ombudsman (PHSO) determined that impacted women could qualify for a "Level 4" compensation payment from the Government, which comes to between £1,000 and £2,950.

However, the ombudsman noted it was the responsibility of MPs to determine and vote on an appropriate payout for women born in the 1950s. Despite the PHSO's findings, the Government stated the £10.5billion compensation bill for Waspi women could not be justified despite agreeing with the ombudsman over the DWP's "maladministration".

However, in November, Mr McFadden said his DWP would review the previously-announced policy not to compensate the women born in the 1950s.This came as court proceedings led to the rediscovery of a 2007 DWP evaluation which had led to officials stopping sending automatic pension forecast letters out.

Reacting to Mr McFadden's statement, Waspi chair Angela Madden said: "Ministers have demonstrated their utter contempt for 1950s-born women, for Parliament and for the Parliamentary Ombudsman.

"The Government has kicked the can down the road for months, only to arrive at exactly the same conclusion it has always wanted to. This is a disgraceful political choice by a small group of very powerful people who have decided the harm and injustice suffered by millions of ordinary women simply does not matter.

"The Parliamentary Ombudsman says economic circumstances should not be used as an excuse to deny compensation. The Government has magically found billions to fund policies not made in their election manifesto, proving money can quickly become available when ministers consider something a priority.

"Waspi is taking legal advice, and all options remain on the table. We stand ready to pursue every avenue in Parliament and in the courts to secure the justice that has been so shamefully denied."