The government will review its decision to deny compensation for women affected by changes to the state pension age. This reconsideration follows new evidence that may impact the outcome.

At a glance

Reconsideration of Compensation Decision

The UK government has announced it will revisit its previous decision to reject compensation for women adversely affected by changes to the state pension age. Campaigners argue that 3.6 million women born in the 1950s were not adequately informed about the increase in the pension age, which was adjusted to align with men's retirement age. Last year, the government acknowledged a 28-month delay in notifying these women but maintained that no financial payouts would be made. However, new evidence has emerged that may influence the government's stance on compensation. Current Pensions Secretary Pat McFadden emphasized that the review does not guarantee financial redress. He stated that the decision to reconsider should not be interpreted as a commitment to awarding compensation.

New Evidence Emerges

The undisclosed evidence prompting the review includes a survey from 2007, which was not available to Liz Kendall, the Work and Pensions Secretary at the time of the original decision. McFadden indicated that further checks would be conducted to ensure no additional relevant documents or surveys were overlooked. While no specific timeline has been provided for the review process, McFadden acknowledged the public's impatience for resolution. He stressed the importance of thorough consideration of the matter.

Previous Recommendations for Compensation

In early 2022, a parliamentary ombudsman recommended compensation ranging from £1,000 to £2,950 for each affected woman. However, the government rejected this recommendation, stating there was insufficient evidence of direct financial loss resulting from the pension age changes. Ministers have expressed concerns about the fairness of a flat-rate compensation scheme, which could cost taxpayers up to £10.5 billion. The Women Against State Pension Inequality (Waspi) campaign has called for payments of at least £10,000 per individual and is pursuing a judicial review of the government's decision.

Judicial Review Scheduled

The Waspi campaign has raised funds for a legal challenge against the government's refusal to provide compensation. A court has capped the contribution to the government's legal fees if the campaigners are unsuccessful. The case is scheduled to be heard in the High Court in December, and the government has informed the court of its decision to reconsider the compensation issue.

Changes to State Pension Age

The state pension age has been gradually increasing due to rising life expectancy, currently set at 66 for both men and women. Historically, men received their pensions at 65, while women were eligible at 60. The 1995 Pensions Act established a timeline to equalize the pension age, raising the qualifying age for women to 65 between 2010 and 2020. However, the coalition government accelerated this process, moving the new qualifying age for women to 65 by 2018 under the 2011 Pensions Act. These changes have sparked controversy, with campaigners arguing that the rapid adjustments and their communication have unfairly impacted women born in the 1950s.