The Department for Work and Pensions (DWP) has once again rejected calls to pay compensation to millions of WASPI women, dealing a major blow to campaigners. In a fresh decision published on Tuesday, ministers confirmed they will not introduce any compensation scheme for women born in the 1950s who were affected by failures in the communication of State Pension age changes.
Background of the WASPI Campaign
The WASPI (Women Against State Pension Inequality) campaign has been fighting for compensation for women who were not adequately informed about increases to their State Pension age. The Parliamentary and Health Service Ombudsman (PHSO) had previously concluded that these women suffered injustice due to delays in the DWP writing to them about the changes. The Ombudsman recommended compensation at level four on its scale of injustice, equivalent to payments of between £1,000 and £2,950, and suggested that Parliament should consider a mechanism to provide redress. Up to 3.5 million women could potentially have been affected.
Government's Stance
Despite the Ombudsman's recommendation, the DWP has doubled down on its refusal to pay. In its statement, the department said: "We have decided against introducing financial compensation for women affected by the delay in sending out State Pension age letters." It added: "Introducing a financial compensation scheme is neither fair nor feasible and would not represent good value for taxpayers, and, as a consequence, one will not be set up."
Legal Challenge Prompted Reassessment
The Government had initially rejected compensation in December 2024. However, ministers were forced to revisit the issue after a legal challenge highlighted a 2007 DWP research report that had not been taken into account when the original decision was made. The report examined the effectiveness of pension communications and found that unsolicited pension forecasts had only a limited impact on people's knowledge and retirement planning. After reviewing the evidence, Work and Pensions Secretary Pat McFadden committed to making a fresh decision. The Government's new conclusion is that the additional evidence does not alter its overall position.
DWP Apologises but Refuses Payouts
The Ombudsman found maladministration in two areas, concluding that decisions taken between 2005 and 2007 led to a 28-month delay in starting a direct mailing exercise to women affected by the 1995 Pensions Act. The DWP has accepted that finding and issued an apology, stating: "We are sorry that we did not send individual letters earlier in this case." However, ministers insist there was no direct financial loss caused by the delay and argue that most women already knew that the State Pension age was changing. The document states: "The evidence is also clear that the majority of 1950s-born women knew that State Pension age was changing." Officials also argued that it would be impossible to create a fair compensation scheme because it would be difficult to establish what individual women knew or would have done differently more than 20 years ago.
Potential Cost of Compensation
The DWP said paying all affected women compensation at the Ombudsman's suggested level could cost between £3.5 billion and £10.3 billion, before administration costs are taken into account. Ministers said such a scheme would risk paying large sums to women who either already knew about the changes or had not suffered any injustice. The department concluded: "Making awards to up to 3.5 million people, very many of whom will not have suffered injustice and/or will have been aware that the State Pension age was increasing, is neither fair nor affordable."
Reactions and Future Prospects
The latest announcement is likely to reignite anger among campaigners, who have spent years pressing for compensation for women affected by the way State Pension age changes were communicated. However, the Government's fresh ruling appears to leave little prospect of payouts without further legal or political intervention.
