The Department for Work and Pensions (DWP) has finally confirmed the crucial deadline for its new decision on potential compensation for millions of women affected by changes to the state pension age.
The Long Road to a New Decision
Campaigners from Women Against State Pension Inequality (WASPI) have fought for over a decade, arguing that women born in the 1950s were not given adequate notice about the increase in their state pension age from 60 to 66. This lack of warning, they say, shattered carefully laid retirement plans.
The Parliamentary and Health Service Ombudsman investigated and found maladministration on the part of the DWP. The watchdog stated the department should have sent letters earlier and recommended government payouts of between £1,000 and £2,950 per woman.
However, in a blow to campaigners in December 2024, the DWP initially declared it would not pay any compensation. Ministers claimed most women were aware of the changes and earlier notification would not have altered their plans.
Court Action and an 11th-Hour Settlement
WASPI campaigners arranged to challenge this refusal through a judicial review in the High Court, scheduled for December 2025. Just before the court date, the DWP dramatically reversed its position.
The department announced it would withdraw its original 'no compensation' decision after new evidence emerged that required consideration. A swift out-of-court settlement was then agreed.
This settlement included a £180,000 contribution from the DWP towards WASPI's legal costs. Crucially, it also legally bound the Work and Pensions Secretary, Pat McFadden, to take a fresh decision.
The Binding 'Best Endeavours' Clause
The court order, dated December 3, 2025, contains a critical clause. It requires the Secretary of State to "use his best endeavours to take and communicate a new decision in response to the Ombudsman's investigation within three months of the date of this order".
The DWP has now officially confirmed it will retake the decision "within three months" of that order. This sets a firm deadline of March 3, 2026, for a new announcement on whether compensation will be paid.
What Happens Next and Broader Pension Context
While awaiting this pivotal decision, the DWP has encouraged state pensioners with questions about their payments to contact the Pension Service on 0800 731 0469 (Monday-Friday, 8am-6pm).
The current state pension age for both men and women is 66. This is already set to rise in stages to 67 by April 2028, with legislation in place for a further increase to 68 between 2044 and 2046.
A 2023 review suggested accelerating the timetable for the rise to 68, but the then Conservative government did not act. The Labour government announced last year that it will conduct another review of the state pension age, keeping the issue firmly on the political agenda.
For the 1950s-born women represented by WASPI, however, all immediate focus is on the DWP's binding commitment to deliver a new compensation decision by early March.
