Starmer dismisses calls for for £10.5bn of compensation for so-called WASPI ladies – regardless of earlier backing large payouts over bungled state pension age improve
Keir Starmer was accused of breaking promises to so-called ‘WASPI’ women today after dismissing calls for £10.5billion of compensation.
The PM insisted he could not add to the ‘burden’ on taxpayers despite the government apologising for delays in sending letters about the state pension age increase.
Campaigners branded the response a ‘betrayal’ and ‘day of shame’ – with Labour already under fire from pensioners for slashing winter fuel payments.
Sir Keir previously supported his party’s pledge to give WASPI women £58billion during the 2019 general election, and backed compensation as recently as 2022.
Announcing the decision in the Commons earlier, Work and Pensions Secretary Liz Kendall flatly rejected an ombudsman’s report suggesting a scheme of payouts of up to £2,950 for each individual affected.
She claimed most women knew about the change anyway and suffered ‘no direct financial loss’.
She argued that a compensation scheme for more than three million people would impose ‘significant cost’ on the taxpayer and not be ‘fair or appropriate’.
Work and Pensions Secretary Liz Kendall apologised for ‘maladministration’ with delays in sending letters to women about the increase in the state pension age
The ‘WASPI’ women have been pushing for a huge payout from the government
Ms Kendall was immediately attacked over photos of her previously campaigning alongside WASPI women
Women Against State Pension Inequality (WASPI) have demanded payouts for women who were born in the 1950s and say they did not get adequate warnings about changes to the state pension.
The decision to push up the pension age was taken in the mid-1990s.
But the report by the Parliamentary and Health Service Ombudsman (PHSO) found that affected women should have had at least 28 months’ more individual notice of the changes by the Department for Work and Pensions.
It also said that for women who were not aware of the changes, the opportunity that additional notice would have given them to adjust their retirement plans was lost due to delay.
The PHSO further suggested that compensation at level four, ranging between £1,000 and £2,950, could be appropriate for each of those affected.
Speaking to broadcasters on a visit to Estonia today, Sir Keir said he understood the anger of those affected
‘The ombudsman’s findings were clear in relation to maladministration, but also clear about the lack of direct financial injustice, as the ombudsman saw it,’ he said.
‘That’s why we’ve taken the decision that we’ve taken.
‘But I do understand, of course, the concern of the Waspi women. But also I have to take into account whether it’s right at the moment to impose a further burden on the taxpayer, which is what it would be.’
Ms Kendall said the PHSO report ‘doesn’t sufficiently recognise’ that 73 per cent of women were aware of the age increase.
She told the Commons: ‘These two facts: that most women knew the state pension age was increasing and that letters aren’t as significant as the Ombudsman says, as well as other reasons, have informed our conclusion that there should be no scheme of financial compensation to 1950s-born women, in response to the Ombudsman’s report.’
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 £3.5billion and £10.5billion.
‘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 £10.5billion would be fair or proportionate to taxpayers.’
Keir Starmer previously backed handing WASPI women £58billion during the 2019 election campaign
Ms Kendall said the rejection of a scheme was an ‘extremely difficult decision to take’.
Ms Kendall said: ‘We believe it is the right course of action, and we are determined to learn all the lessons to ensure this type of maladministration never happens again.’
The Work and Pensions Secretary said the Government would develop an action plan to fix problems identified in the 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, and cited the existing online Check Your State Pension service.
Ms Kendall said: ‘We haven’t taken this decision lightly, but we believe it is the right decision because the great majority of women knew the state pension age was increasing, sending letters earlier wouldn’t have made a difference for most and the proposed compensation scheme isn’t fair or value for taxpayers’ money.’
Angela Madden, Chair of Women Against State Pension Inequality said: ‘The Government has today made an unprecedented political choice to ignore the clear recommendations of an independent watchdog which ordered ministers urgently to compensate WASPI women nine months ago.
‘This is a bizarre and totally unjustified move which will leave everyone asking what the point of an ombudsman is if ministers can simply ignore their decisions. It feels like a decision that would make the likes of Boris Johnson and Donald Trump blush.
‘The idea that an ‘action plan’ to avoid such mistakes in future should be the result of a six-year Ombudsman’s investigation is an insult both to the women and to the PHSO process.
‘An overwhelming majority of MPs back WASPI’s calls for fair compensation and all options remain on the table. Parliament must now seek an alternative mechanism to force this issue on to the order paper so justice can be done.’
