Will Waspi succeed? What to expect from compensation decision in the women’s state pension age changes case

“Waspi” women affected by state pension age changes are still waiting for the verdict of an investigation into the failures around Government communication.

Their plight is currently under investigation by the Parliamentary and Health Service Ombudsman (PHSO), which could recommend financial redress for the injustice they have suffered as a result of poor communication over the policy change.

The PHSO has already established there was maladministration over the failure of the Department for Work and Pensions (DWP) failure to properly inform the women that they would not get their state pension at the age of 60.

It is now reviewing how much injustice they faced as a result, which will inform any recommendation of compensation – it remains unclear when this well be published, but what can Waspi women expect?

Will Waspi succeed?

When the PHSO finds maladministration resulted in injustice, it can make recommendations including compensation on a scale of £100 to £10,000. It cannot reimburse women for the amount they have lost as a result of the state pension age changing.

Pensions experts cautioned earlier this year that compensation for women affected by the state pension age changes could be far more limited than they are hoping for.

Former pensions minister Sir Steve Webb said the PHSO had “made it clear that he thinks it is ultimately up to Parliament to decide what state pension ages should be. On this basis, it is highly unlike that any form of blanket compensation scheme will be recommended.”

Sir Steve, now a partner at pensions firm LCP, added: “The best that the campaigners can hope for is that there may be some offer of compensation for those who can show that the failure of DWP to communicate these changes in the period up to 2010 itself caused them to lose out – for example by making decisions about retiring, which they would not have made had they been properly informed.”

John Ralfe, an independent pensions consultant, said he thought some people were being “misled” into thinking there could be “tens of thousands of pounds” in compensation up for grabs.

He predicted: “Based on the PHSO published guidelines, and amounts awarded, the compensation will be just a few hundred pounds for a few thousand women.”

Writing for i, financial journalist Paul Lewis cautioned that, although he has “a lot of sympathy” with the Waspi cause: “I believe their battle is lost because the sum required to pay adequate or meaningful compensation is just too large.”

He added: “Government debt is more than £2.5tn – more than the whole country earns in a year. So a speedy payout totalling tens of billions – much of it paid to women who do not currently need it – seems little more than a dream.”

Waspi’s lawyer John Halford, a partner at Bindmans, was more hopeful earlier this year. He said the PHSO has been tasked with establishing what was lost as a result of the DWP’s insufficient communication and the impact on the women when they finally found out about their state pension age.

“If those questions are fairly confronted by the Ombudsman, with his policies and past reports on similar injustices in mind, there is a real prospect of recommendations being made that begin to address the large-scale injustices at the heart of this case,” Mr Halford added.

When will Waspi get a decision?

The PHSO has been looking into the way the Government communicated the state pension age changes to the affected women.

Stage one of the report, which found maladministration in part of the Department for Work and Pensions’ information campaign, has already been published.

But in a later stage of the investigation, the PHSO found there was only a limited level of injustice, which the Waspi group and its legal team disagrees with.

Legal action was launched against the PHSO, which, in response, said it would take another look at the relevant part of its investigation.

For Waspi, this is a crucial step as they believe it could have some bearing on how much compensation they get.

The PHSO said it had “intended to publish our final report by the end of March 2023. With a legal challenge brought against us, we have agreed to look again at part of our stage two report, subject to the court’s approval. Our final publication will be delayed while this takes place.”

It added: “We are unable to say when this process will be completed but we believe this will be the quickest route to remedy for those affected.”

Mr Halford has previously stated that he hoped the report would be published in summer 2023, but September has arrived with no further update.

MPs have thrown their support behind securing justice for the group. More than 40 members have written to the PHSO, calling for a speedy conclusion to its review and for fair compensation.

Who are Waspi women?

Waspi women were born in the 50s and say they were not properly informed by the Government that their state pension age would increase from age 60 to age 65 to be equal with men – it then increased to 66 for both sexes.

They say the poor communication over the changes left them with insufficient time to prepare for up to six years longer without their pension, and that this caused them lasting financial problems, as well as affecting their health and emotional wellbeing.

The state pension age is due to increase again to 67 by 2028, with a further rise to 68 set to come by 2046 at the latest.

Many members of the campaign have come forward to share their stories. A former NHS nurse who had to retire due to illness at 55 described to i in August how she has had to take up candle-making to boost her income.

Susan Buck, 67, said: “There are thousands of us in the same boat. It’s because every government minister has to have a tweak. They don’t realise the impact they have, and that there’s cumulative effect. I joined the Waspi campaign to draw more attention to the problem.”

Earlier this month, the group released a single titled “Waspi Women (We’ve Been Stung)” to promote its campaign, including the refrain: “We’re Waspi women, hear us shout. All these years we paid in; now it’s time they paid out.”

Regardless of the eventual result, the campaign has been hailed a success for how effectively it has highlighted the plight of 50s-born women.

“I think everybody, regardless which side of debate they are on, would respect [Waspi’s] persistence, determination and resourcefulness,” said Tim Middleton, director of policy and external affairs at the Pensions Management Institute.