The WASPI (Women Against State Pension Inequality) generation of women should get DWP compensation as they wrongly treated, an expert has said.
The WASPI campaign group is pushing on in their fight for DWP payouts for the 1950s-born women, after they were affected when their state pension age increased from 60 to 65 and to 66.
They claim they were not properly informed of the change by the DWP with many unaware they would have to wait many more years to claim their state pension, ruining their retirement plans.
Hopes were restored when the Parliamentary and Health Service Ombudsman (PHSO) recommended payouts up to £2,950 in 2023, but the Labour Government said at the end of last year that there would be no compensation scheme.
Fiona Peake, personal finance expert at Ocean Finance, said the women do deserve compensation. She said: “Many planned their retirements based on what they were told, only to be blindsided by changes.”
She said that compensation could be arranged in various ways with two options being “direct payments” or “adjustments to state pension entitlement.
The finance expert added: “The key is fairness. These women lost out due to poor communication, and that needs to be put right.”
In announcing the Government’s decision not to provide payouts, Work and Pensions Secretary Liz Kendall said it would be a poor use of taxpayers’ money.
She also argued that the vast majority of the women knew of the change, and that despite the PHSO previously finding there was “maladministration” in the DWP‘s efforts to communicate the change, it would not have made a big difference to send out letters sooner to inform the women.
The WASPI campaign are now preparing a legal challenge to demand a judicial review of the decision not to grant compensation, with a fundraiser for the project amassing some £100,000 in public support at the time of writing.
Ms Peake said the legal challenge “could be a game-changer”. She explained: “If they win, it could set a precedent for future cases where Government departments have been found to have acted unfairly but refused to offer compensation. It could also lead to wider scrutiny of how changes to pensions and benefits are communicated to the public.”
She also issued a word of warning about the Government’s decision to ignore the PHSO’s recommendation, in its decision not to provide payouts.
Ms Peake said: “That raises serious questions about accountability. If an independent watchdog’s findings can be brushed aside, what does that mean for future cases? It’s no wonder many see this as a dangerous precedent.”
Looking at the question as to whether ministers may change their mind on the decision, she commented: “It’s unlikely without serious pressure. The financial cost of compensation would be high.”
But she added that if the WASPI campaign’s legal campaign gains traction or if the public support for the cause ramps up, there could be a U-turn.
