Millions of women born in the 1950s fighting to win back ‘lost’ state pensions are on the brink of defeat, after years of campaigning and hundreds of thousands of pounds spent on legal costs.
Until 2010, women from the age of 60 were entitled to the state pension. The government announced in 1995 that this would be gradually increased to the age of 65 to bring it in line with that of men. Both ages are now rising together.
However, campaign group Women Against State Pension Inequality, or ‘Waspi’, has argued since 2015 that women born in the 1950s, who were most affected by the change in which they could claim the state pension, had not been given enough notice or detail.
It is estimated that approximately four million women have run into financial difficulties because their retirement plans have gone off course.
The Parliamentary Ombudsman, the government watchdog, ruled in 2021 that the Department for Work and Pensions was guilty of maladministration, but DWP has rejected these claims and refused to agree to any compensation.
The ombudsman is nevertheless reportedly planning to submit the matter to parliament.
A leaked memo on journalist David Hencke’s blog shows that the ombudsman will ask Parliament to come up with a solution.
If the decision goes to Parliament, it is unlikely that the majority of MPs will break with the DWP’s view on the issue and vote for compensation, experts warn.
Sir Steve Webb, a former pensions minister and now a partner at the consultancy LCP, said the cost of compensating Waspi women would be “huge”.
“Parliament is sovereign and can do whatever it wants, but there is great respect for the ombudsman’s reports.
“However, it is unlikely that when Parliament receives the full report it will decide to spend billions on compensation.”
It means that the efforts of thousands of women, as well as the thousands of pounds mobilized for legal campaigns through crowdfunding, could be wasted.
So far, almost 10,000 people have donated £151,000 to the Waspi campaign group to fund a claim in the High Court for a judicial review of the ombudsman’s report.
More than 900 people have donated £16,000 to launch a class action against the DWP through CEDAWinLaw, the successor to the separate “Back To 60” campaign group.
The ‘Back To 60’ group was known for its campaign tactics, including a flash mob dance performance opposite the House of Lords, with images projected onto Parliament and the Bank of England.
‘A nightmare’
June Lambert, a 68-year-old from Northamptonshire, believes she is owed more than £50,000 in state pensions by the government.
“I have donated to legal campaigns because I feel very strongly about it,” she said.
“I started working when I was fifteen and worked until I was sixty. It wasn’t until a few months before I turned 60 that I realized that I would have to wait another six years before I was eligible for the state pension. But I then had to finish work because my husband was diagnosed with motor neurone disease and prostate cancer, so I became his sole and full-time caregiver.
“I stopped working and had to rely on my savings and informal care allowance. He passed away in 2019 and I have been living off my savings ever since. It was a nightmare.”
Baroness Ros Altmann, former pensions minister, said she would like to see “recognition of the hardships” women have endured because of the mismanagement of the state pension age increase.
“I am one of the women affected, but I do not believe I deserve any compensation because I agree with the idea of equalizing the state pension age for men and women,” she said. “However, the way this was done – and particularly the second increase – caused significant hardship for many and I believe there is some recognition that this has caused real hardship for women.”
The Parliamentary Ombudsman found in 2021 that the Department for Work and Pensions had failed to provide clear communication about the state pension age. However, it has never formally published redress recommendations.
It was expected to publish the second phase of its study at the end of March this year, but was postponed indefinitely after a legal challenge to the original draft.
The final report is expected to be published early next year, but the Supreme Court ruled in 2019 that the government was right to correct “historic direct discrimination against men” and underlined that the ombudsman cannot reimburse “lost” pensions.
Angela Madden, chair of the Waspi Group, said: “Waspi continues to work with model complainants to ensure that the PHSO fully considers all impacts on those affected. Our campaigns and legal challenges have ensured that women are heard and we will continue that work in the final months of this investigation.”
A spokesperson for PHSO said it had shared its preliminary views with complainants and DWP, and would consider all responses received before making any final decisions.
“We are confident that we have conducted a fair and impartial investigation. As an independent ombudsman, it is our duty to provide the right outcome for all involved and ensure that justice is achieved. The cooperative approach we have taken will provide the fastest resolution for those affected.”
A DWP spokesperson said: “We do not comment on leaks and it would be inappropriate to do so while the ombudsman’s investigation is ongoing.
“The government decided more than 25 years ago to equalize the state pension age for men and women.
“Both the High Court and the Court of Appeal have supported the DWP’s actions, under successive governments dating back to 1995, and the High Court refused the claimants leave to appeal.”
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