New calls for State Pension age compensation plan for WASPI women to be announced before Spring Budget

Liberal Democrat MP Liz Jarvis made a passionate plea to the Labour Government to resolve the issue of compensation for millions of women born in the 1950s affected by changes to their State Pension age during a Treasury income tax debate in Parliament on Tuesday. The Eastleigh MP urged Chancellor Rachel Reeves not to leave any redress proposals “until the next Budget” as “those women have already waited long enough”.

Ms Jarvis highlighted “thousands of women in her own constituency who have been “impacted by the DWP’s (Department for Work and Pensions) failure to communicate changes to their State Pension age”. She continued: “It was incredibly disappointing that the WASPI women (Women Against State Pension Inequality campaign) did not get a single mention in the Chancellor’s speech.”

READ MORE: New State Pension age compensation warning to all women born in the 1950s

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The Labour MP added: “It has been eight months since the Ombudsman found that the DWP had failed to adequately communicate the changes. I implore the Chancellor to make the resolution of that issue a priority. Do not leave it until the next Budget; those women have already waited long enough.”

Democratic Unionist Party MP Jim Shannon also pressed Chief Secretary to the Treasury, Darren Jones to confirm that a statement on a redress plan would be made before the parliamentary Christmas break.

Mr Shannon said: “We very much welcome what the Government are doing in relation to the contaminated blood and Post Office Horizon scandals, but let's ask the Minister a very gentle question - a question that needs to be answered - in relation to the WASPI women?

“When the right hon. Gentleman was in opposition, we all supported the WASPI women, and now he is in government. I understand that the government are looking at this issue. What will happen to the WASPI women? Can we expect to have that addressed during this term?”

Mr Jones responded: “The Ombudsman reported to this House before the election, making a number of recommendations, but did not conclude the basis on which a compensation scheme might apply.

“Further work is therefore required, which the Secretary of State for Work and Pensions (Liz Kendall) is looking at, but I would point him to the fact that this is a Government who honour their promises.”

The Treasury Minister did not address Ms Jarvis' call for an announcement to be made before the next Budget, which is expected to be in March.

A previous version of this article incorrectly attributed comments made by Ms Jarvis about State Pension age compensation to Labour MP Marie Rimmer. Ms Rimmer did not make any comments on the subject and was an editorial error.

The Parliamentary and Health Service Ombudsman (PHSO) published its final report on March 21. It stated that “Parliament must urgently identify a mechanism for providing that appropriate remedy” and recommended compensation equivalent to Level four on its banding scale, which is worth between £1,000 and £2,950.

Pensions Minister Emma Reynolds confirmed last week that the DWP have been “considering the costs of setting up a compensation scheme”.

In a written response to Steve Darling, the Liberal Democrat shadow work and pensions spokesperson on Tuesday, Ms Reynolds explained that as part of the DWP’s “work on the Ombudsman’s investigation and report” it had found that the PHSO’s estimate to compensate all women at level four - between around £3.5billion and £10.5bn - did not take administrative costs into account.

The Pensions Minister said: “As part of our work on the Ombudsman’s investigation and report, we have been considering the costs of setting up a compensation scheme.

“The Ombudsman used DWP’s broad estimates in their report published 21 March 2024, stating that ‘Compensating all women born in the 1950s at the level 4 range would involve spending between around £3.5 billion and £10.5 billion of public funds’. This estimate excludes administration costs.”

Ms Reynolds added: “This government is giving its full and proper consideration to all areas of the Ombudsman's report.

“Once this work has been undertaken, we will be in a position to outline our approach.”

Mr Darling had asked DWP if it had “undertaken financial modelling for a potential compensation scheme for issues raised” in the PHSO’s final report.