State Pension Age Changes: Compensation

1. What recent assessment he has made of the potential merits of compensating 1950s-born women impacted by the maladministration of state pension age changes.

3. What recent assessment he has made of the potential merits of providing compensation to women born in the 1950s affected by changes to the state pension age.

22. What recent assessment he has made of the potential merits of implementing the recommendations in the Parliamentary and Health Service Ombudsman’s report entitled “Women’s State Pension age: our findings on injustice and associated issues”, published on 21 March 2024.

The Government made their decision on this case on 29 January 2026, after giving the PHSO’s report careful consideration. The detailed reasons for our decision were set out in our response, which has been placed in the Library of the House.

The Parliamentary and Health Service Ombudsman has recommended compensation for millions of WASPI women. In 99% of cases, PHSO recommendations are complied with, so does the Minister accept that singling out this group by not complying amounts to discrimination on the basis of sex and age? If not, what possible justification can the Minister offer?

As I have previously said to this House, it is unusual but not unprecedented for the Government to take a different view from the PHSO. That does not mean that we have not taken its report incredibly seriously—I have also met its representatives—but as I have said, we set out the detailed reasons for the decision we came to in the response we laid in the House of Commons Library on 29 January.

I ask this question on behalf of the 6,000 WASPI women in Strangford. Given that the Department’s own 2007 evaluation raised serious doubts about the effectiveness of letters to pensioners, how can the Minister justify the decision that no direct financial loss occurred when thousands of women were deprived of the 28-month notice period required to adjust their life savings and retirement plans? In the light of the Scottish Parliament’s decision to again press this issue in February, will he please do the right thing, put actions before apologies, and deliver help and support? I say that respectfully, but I do want a good answer.

The hon. Member has raised this issue repeatedly over a number of years, and I recognise that. Specifically on the issues he raises, it was the ombudsman itself, rather than the Government, that initially set out that the women affected did not suffer direct financial loss. What is sitting behind the ombudsman’s judgment saying that is that the issue facing the ombudsman was not either the original decision in 1995 to increase the state pension age or the decision to accelerate the increase by the coalition Government in 2011. The ombudsman was looking narrowly at the question of how that increase in the state pension age was communicated, and I think it is really important to clarify that distinction with our constituents. It is the latter—the communication of the state pension age—that we have discussed in this House on numerous occasions.

The hon. Member specifically raises the 2007 evidence, which showed that a minority of people read and remembered such letters. However, it showed something else quite important, which was that those with good knowledge of their state pension entitlement were most likely to read the letters. It was therefore not a good metric for assuming that the majority of those who were sent letters would have learned something from that and changed what they knew.

These women were not properly informed about changes to their state pension. So said the PHSO on 21 March 2024, just in time for the election that year, when so many Labour Members of course promised to address the issue, if elected—another shameful, broken promise. First, can I ask the Minister to explain why the last ministerial meeting with the WASPI women took place in September 2024? Secondly, can he tell the House what work has been undertaken in his Department on a properly structured compensation scheme that could be implemented when the Government decide it is time for another U-turn?

The hon. Member raises a question about what Labour Members were promising in the 2024 election. As I am sure he is aware, our manifesto was clear that it did not make a commitment to bring forward compensation. What is the case is that Labour Members opposed the acceleration of the state pension age back in 2011, which in some cases gave women only five years’ notice. However, we of course lost that vote in Parliament and subsequent elections, and the courts unfortunately upheld that decision. As I have said, what we are debating in this case is the communications, not the decision itself. On those grounds, we have set out in detail the reasons for the decisions we have made and laid that document in the House of Commons Library.

We now come to a marathon runner—five hours and 20 minutes—Chris Vince.

I will not lie, Mr Speaker: bobbing is slightly more difficult than normal this morning.

Can the Minister detail what the ombudsman found about the financial loss women suffered as a result of the delay in sending out letters? On a more general point, can he say what this Government are doing to support women in retirement in my constituency of Harlow?

My hon. Friend makes a large effort not only when it comes to pounding the streets, but in raising his constituents’ cases and, in this case, those of female pensioners. He is absolutely right to say that there is a distinction between the communication of state pension age increases and the increase in the state pension age, and it is the latter that has had such an effect on millions of women, particularly the speed of the increase in 2011. I think there are lessons for this House and for all Governments about what would happen in future, and we certainly would not be bringing forward such short-notice changes.

My hon. Friend is also right to say that what matters more generally is what we are doing to support pensioners, and making sure they have dignity and support in retirement. On that front, just this month we are increasing the state pension, and we will be continuing to do that over the course of this Parliament via the triple lock, which is set to increase it by up to £2,100. We are also making sure that £26 billion of investment is going into our NHS, bringing down waiting lists month on month, because this Government came into office with one in five of those aged over 75 on NHS waiting lists, and we cannot allow that to continue.

I call the shadow Minister.

When his party was in opposition, the Prime Minister promised compensation for WASPI women, but when faced with the economic reality of the costs, he and the Secretary of State chose common sense over ideology. In the spirit of that pragmatism, may I ask the Pensions Minister also to take a sensible, thoughtful approach to mandation powers in the Pension Schemes Bill, and to remove clause 40 altogether?

We have debated this issue quite extensively in recent weeks, and the House will have another chance to do so later today. As I have set out during our debates, representatives of the industry itself have said that it is in the interests of savers to invest in a wider range of assets. That reflects lessons from across the industry—from open defined-benefit schemes, but also from those in the rest of the world, where the lack of exposure of the UK’s defined-contribution schemes to that wider range of assets makes it stand out. We have introduced a reserve measure to backstop the changes that the industry says are needed to solve a collective action problem. I will not try the patience of the House by repeating them now, but the aim is to ensure that savers do not lose out. We have also put in place significant protections relating to an affirmative vote, as well as the savers’ interest tests that enable pension schemes to spell out what is in the interests of their members.