The UK government is facing mounting pressure to compensate women born in the 1950s whose retirement plans were thrown into chaos due to changes in the state pension age. A scathing report by the Parliamentary and Health Service Ombudsman (PHSO) has called for payouts of between £1,000 and £2,950 for the affected women, with some campaigners pushing for compensation of at least £10,000 per person.
The report criticized the government for its mishandling of the change in the pensionable age from 60 to 65, accusing it of failing to acknowledge its error or to rectify the situation for those impacted. The PHSO estimated that compensating all affected women could cost the government up to £10.5 billion.
Campaigners from Women Against State Pension Inequality (Waspi) have called for a more substantial compensation package, highlighting the financial struggles and hardships faced by many women as a result of the pension age changes. Some women reported losing tens of thousands of pounds in state pension payments, forcing them to deplete their savings, sell their homes, or rely on their children for financial support.
The government has yet to commit to paying compensation, with the Department for Work and Pensions (DWP) indicating it may not comply with the PHSO’s recommendations. MPs from across the political spectrum have urged the government to set up a compensation scheme and deliver fair compensation to the affected women as a matter of urgency.
The ombudsman’s report detailed the stress and anxiety experienced by women as a result of the government’s poor communication and handling of the pension age changes. It found that thousands of women may have been affected by the failure to provide accurate and timely information about the reforms.
The government is under pressure to respond to the ombudsman’s recommendations and address the injustices faced by the women impacted by the state pension age changes. The issue has sparked calls for accountability and fair compensation for the women whose lives were upended by the government’s failures.