The government has decided to stick with its 2024 decision not to compensate 1950s-born women for maladministration of the Department for Work and Pensions in communicating a higher state pension age, despite a recommendation by the Parliamentary and Health Service Ombudsman. 

In the House of Commons on Thursday, work and pensions secretary Pat McFadden said that he has come to the same conclusion as his predecessor Liz Kendall not to pay any compensation to 1950s-born women. This is despite the DWP accepting that there was maladministration and the fact that the prime minister and senior cabinet members supported Women Against State Pension Inequality campaigners in the run-up to the 2024 general election. 

McFadden said: “The evidence shows that the vast majority of 1950s born women already knew the state pension age was increasing, thanks to a wide range of public information, including through leaflets, education campaigns, information and GP surgeries on TV, radio, cinema and online.” 

He then argued that a compensation scheme would “not be practical” nor “fair, given it would be paid to the vast majority who were aware of the changes”.  

McFadden said an ‘action plan’ to improve communication and avoid future failures will resume. Work on the plan was stopped pending the fresh decision, something the PHSO and MPs have been critical of. 

Angela Madden, who chairs the Waspi group, called the decision “a disgraceful political choice”.

“The Parliamentary Ombudsman says economic circumstances should not be used as an excuse to deny compensation. The government has magically found billions to fund policies not made in their election manifesto, proving money can quickly become available when ministers consider something a priority,” she said. “Waspi is taking legal advice, and all options remain on the table. We stand ready to pursue every avenue in parliament and in the courts to secure the justice that has been so shamefully denied.” 

The maladministration occurred as the DWP sent letters to women 28 months too late. However, McFadden, like Kendall, claimed that women would not have read the letter. He added that the newly discovered 2007 report about Automatic Pension Forecasts – which had prompted the ‘retaking’ of the decision – had also concluded that the impact of a letter would have been “negligible”. 

The report from 20 years ago says that “the mailing has had relatively little net impact on knowledge and retirement planning behaviour amongst recipients aged 50+ overall”. 

However, it adds that further analysis had shown that reading the material “was an influence... for some less knowledgeable sub-groups" and that "those who felt they had poorer pensions knowledge were more likely to feel the [automatic pension forecast] had played a part in their taking action”. 

The opposition condemned the minister's statement, despite choosing not to progress the matter when in power and leaving the decision to the next government. Former pensions minister Guy Opperman also refused to meet Waspi campaigners.  

But criticism also came from Labour’s own ranks. Barry Gardiner MP acknowledged there was no manifesto commitment but pointed out that “only two years before the general election, our now prime minister spoke in favour of a just settlement for Waspi women”. 

Last week, 101 MPs signed a letter in support of compensation for Waspi women. 

The government has so far made large payments to several groups, including some not mentioned in its manifesto, such as the members of the British Coal Staff Superannuation Scheme.