The Labour Government has been questioned about the possibility of a “future fiscal event” to finally provide compensation for the WASPI (Women Against State Pension Inequality) campaign. The campaign is advocating for compensation for women born in the 1950s who were affected by the increase in state pension age from 60 to 65, a change that was not adequately communicated by the DWP.
In March this year, the Parliamentary and Health Service Ombudsman published a report suggesting compensation amounts between £1,000 and £2,950. Liberal Democrat MP Susan Murray, referencing the report, recently asked in the Commons if “compensation proposals will form part of a future fiscal event”.
Pensions minister Emma Reynolds responded: “I was the first Minister in eight years to meet the WASPI campaign group and listen to their concerns. We need time to review and consider the Ombudsman’s report along with the evidence provided during the investigation.
“Once this work has been undertaken, the Government will be in a position to outline its approach.” Another senior Labour minister, Work and Pensions Secretary Liz Kendall, addressed the WASPI issue this week, assuring the Work and Pensions Committee that the Government would act on the compensation issue “as soon as possible”.
The Liberal Democrats have been vocal backers of the WASPI (Women Against State Pension Inequality) campaign, pushing again for compensation in their manifesto in the lead-up to the General Election this year. The newly established Work and Pensions Committee could also play a significant role in lending support to the cause.
Labour MP Debbie Abrahams has been appointed chair and was on the previous committee that recommended compensation. Angela Madden, chair of WASPI, commented positively on Ms Abrahams’ role: “She’s keen to continue the conversation with the department. They will be holding the minister to account.
“They will have a scrutiny session set up for before long so it’ll be very interesting to know when that is and pop along and see the outcome of it.” Another top Labour politician who has voiced support for the cause is Sir Stephen Timms, currently serving as the Minister for Disabled People, Health and Work.
He said previously: “The debate over the impact of the DWP’s failure to communicate increases in the women’s state pension age has dragged on for too long and it is time the Government took action to resolve the issue. There is no perfect solution, but there would seem to be broad support for a rules-based system of compensation with a degree of flexibility for cases where women have experienced direct financial loss.”