In a move that has provoked widespread anger, the UK government has rejected calls to compensate millions of women born in the 1950s who claim they have been adversely impacted by changes to the state pension age. The decision has reignited the long-running dispute over the treatment of so-called “Waspi women” and their fight for pension fairness.
Who are the Waspi Women?
The term “Waspi” stands for Women Against State Pension Inequality, a campaign group founded in 2015 to represent women born in the 1950s who argue they have unfairly lost out due to the way alterations to the state pension age were implemented. It’s estimated that up to 3.5 million women may have been affected.
Many of these women say they had long expected to receive their state pension at 60 based on the system that existed for decades. However, reforms included in the 1995 Pensions Act equalized the state pension age for men and women, gradually raising it for women from 60 to 65 between 2010 and 2020. A subsequent change accelerated this timetable, meaning the state pension age hit 65 for women by November 2018 and then rose to 66 by October 2020.
The Communication Controversy
While the equalization of state pension ages is not disputed, Waspi and similar groups argue that the government failed to properly communicate the changes, leaving many women unaware and unable to adjust their retirement plans. They say this has caused financial hardship, with some women forced to keep working or rely on benefits.
I’ve lost around £45,000 as a result of my state pension age being six years later than I’d planned for. It’s completely upended my retirement.
An anonymous Waspi woman
Crucially, the government did not write directly to affected women about the changes for nearly 14 years after the 1995 Act. It was not until 2009 that the DWP started sending individual letters.
The Ombudsman’s Verdict
After a lengthy investigation, the Parliamentary and Health Service Ombudsman (PHSO) found the DWP guilty of maladministration over its handling of the state pension age changes. In a March 2023 report, it said those affected should be compensated.
However, the ombudsman did not specify exactly how many women should receive payouts or what level of compensation would be appropriate, making vague references to “thousands” of women being owed redress. Some estimates suggested a full compensation scheme could cost up to £10 billion.
Government Refuses to Budge
Despite the ombudsman’s ruling, the government has now declared it will not be providing any compensation to Waspi women. Chancellor Rachel Reeves said the public finances could not bear the strain of a multi-billion pound payout, arguing that funding public services was a bigger priority.
A blanket compensation scheme costing up to £10.5 billion could not be justified given the current state of the public finances.
An HM Treasury spokesperson
Ministers pointed to 2006 survey data suggesting 90% of women in the relevant age bracket were aware of the planned state pension age changes. They also argued there was evidence showing that sending unsolicited letters earlier would likely have been ineffective.
Waspi Women Vow to Fight On
News of the compensation refusal sparked an immediate backlash from Waspi women, opposition parties, and campaigners. Many expressed fury at what they see as a profound betrayal.
- Liberal Democrat MPs called it a “day of shame” for Labour and urged Parliament to intervene
- Waspi activists said they would not give up their battle and predicted growing public pressure
- The Ombudsman said she was disappointed by the government’s decision to reject compensation
With Waspi women vowing to fight on and their cause gaining prominence, some believe it is only a matter of time before the government is forced to change course. As one Waspi supporter put it: “MPs should not take this decision lying down. Where’s the justice for 1950s women?“
The plight of Waspi women has exposed the complexity and controversy around state pension reform. While the equalization of state pension ages is widely accepted as necessary, the real flashpoint is how such sweeping changes are managed and communicated to those most directly impacted. As things stand, the Waspi campaign seems set to remain a thorn in the government’s side, with the pension pain of 1950s-born women showing no sign of easing.
