Taxpayers canât afford Waspi compensation, says PM
Prime Minister Keir Starmer has defended the decision to reject compensation for women hit by changes to the state pension age, arguing that the taxpayer âsimply canât afford the tens of billions of poundsâ in payments.
He added that â90% of those impacted knew about the changes that were taking placeâ.
However, during Prime Ministerâs Questions, Sir Keir was repeatedly pressed on the governmentâs decision, with one MP calling for a vote.
Campaigners say that 3.6 million women born in the 1950s were not properly informed of the rise in state pension age to bring them into line with men.
âWeâre certainly not giving up the fight,â said Debbie de Spon, membership director of the Women Against State Pension Inequality (Waspi) campaign.
The governmentâs decision comes despite an independent government review recommending the compensation in March.
Rebecca Hilsenrath, head of the Parliamentary and Health Service Ombudsman, which wrote the review, told Times Radio that although the government had accepted that it had delayed writing to 1950s-born women by 28 months, and apologised, it had rejected paying compensation.
âWhat we donât expect is for an acknowledgement to be made by a public body that itâs got it wrong but then refuse to make it right for those affected,â she said.
Before this yearâs general election, several senior Labour figures had backed the campaign and Sir Keir himself signed a pledge for âfair and fast compensationâ in 2022.
In 2019, Angela Rayner, now the deputy prime minister, told the BBC: âThey [the government] stole their pensionsâŠweâve said weâd right that injustice and within the five years of the Labour government weâll compensate them for the money that theyâve lost.â
In the first Prime Ministerâs Questions since the government announced they would not be providing compensation, veteran Labour MP Diane Abbott said the Waspi women had âfought one of the most sustained and passionate campaigns for justice that I can remember, year in, year outâ.
âDoes the prime minister really understand how let down Waspi women feel today?â she asked.
Ian Byrne, an independent MP, said the women were owed compensation for the âinjustice done to themâ and urged the prime minister to hold a vote on the subject.
And Conservative leader Kemi Badenoch said Labour had âplayed politicsâ with the group by previously supporting their campaign.
âShe [Rayner] promised to compensate them in full⊠now they admit we were right all along.â
Responding to the criticism, Sir Keir said the delays to telling women about pension changes were âunacceptableâ.
âIâm afraid to say that taxpayers simply canât afford the tens of billions of pounds in compensation when the evidence shows that 90% of those impacted did know about it, thatâs because of the state of our economy.â
Following PMQs, a No 10 spokesman said that since winning the election, the government had âhad the chanceâ to look at the ombudsmanâs report, which said the women âfaced no direct financial loss as a result of the delaysâ.
The government has said compensation could cost up to ÂŁ10.5bn.
But Ms De Spon said many Waspi women âdidnât knowâ about the pensions changes, and added that even to this day women were saying: âI never even received a letter, let alone when I received a letter.â
She added that former Conservative Chancellor George Osborne had saved more than ÂŁ180bn by raising the state pension age and âboasted that it was easiest money he had ever savedâ.
âWeâre asking for a tiny fraction of that back as compensation for government failure,â she said.
Diane Abbott is one of a small group of Labour MPs objecting to their leaderâs approach. Kate Osborne and Emma Lewell-Buck have also publicly opposed the decision.
The SNP is calling for a vote in Parliament on compensation. The partyâs Westminster leader Stephen Flynn said: âLabour Party politicians posed with Waspi women before the election only to leave them high and dry when they got into government.â
Earlier, Conservative shadow business secretary Andrew Griffith also said the decision was âa betrayalâ, adding that Cabinet ministers had âqueued up, had their photo taken with Waspi women, talked about how they were going to remedy that injustice.â
He said âwe wonât knowâ whether a Conservative government would have paid compensation as they were voted out of government before making that decision.
The then Conservative-run Department of Work and Pensions told the ombudsman at the time of its report in March why it could not pay out.
It cited âthe costs involved, the time it would take, the amount of resource it would involve, and the negative impact delivering a remedy would have on it being able to maintain other servicesâ.
What is the Waspi campaign and who is affected?
About 3.6 million women were affected by a 1995 decision to increase the pension age to 65.
The plan was to phase in that change from 2010 to 2020.
But the coalition government of 2010 decided to speed that up.
Under the 2011 Pensions Act, the new qualifying age of 65 for women was brought forward to 2018, which affected 2.6 million women.
The Waspi campaign group has been pushing for compensation because it says the government failed to tell them â or provide adequate notice â about the changes.
It previously suggested some women should receive ÂŁ10,000 each, at a cost of ÂŁ36bn.
Nine months ago, the Parliamentary and Health Service Ombudsman recommended compensation of between ÂŁ1,000 and ÂŁ2,950 for each of those affected, after a six year investigation.
Ms de Spon said: âIt makes rather a mockery of that system if the [government] can cherry-pick which parts of that investigation they choose to accept.â
The Liberal Democrats had earlier said the stance âsets an extremely worrying precedentâ in its rejection of the ombudsmanâs findings.