Why is this happening now?
The government's U-turn comes just weeks before the High Court was due to hear a legal challenge from the Women Against State Pension Inequality (WASPI) campaign. During the legal process, 'new evidence' came to light which had not been seen by the previous Work and Pensions Secretary, Liz Kendall, when she rejected compensation last December. This evidence is a 2007 Department for Work and Pensions (DWP) report that evaluated the effectiveness of automatic pension forecast letters. In his statement, Pat McFadden said that "in the interests of fairness and transparency, I have concluded that the Government should now consider this evidence". The government has informed the court of its review and is withdrawing from the judicial review.
What is the WASPI campaign about?
The WASPI campaign represents around 3.6 million women born in the 1950s who were affected by changes to the State Pension age. The 1995 Pensions Act first outlined plans to increase the women's State Pension age from 60 to 65, aligning it with the State Pension age for men at the time. A further change in 2011 accelerated this timeline, raising the age to 65 by 2018 and to 66 by 2020. The campaign is not against equalising the pension age; instead, it argues that the DWP provided "inadequate or no notice" of these significant changes. Many women report that this left them without time to create new retirement plans, resulting in substantial financial and personal hardship.
What did the Ombudsman recommend?
After a six-year investigation, the Parliamentary and Health Service Ombudsman (PHSO) published a report in March 2024. The report found the DWP guilty of maladministration. It concluded that the DWP had failed to provide "accurate, adequate and timely information" to the women affected. The PHSO recommended that Parliament should step in and approve a compensation scheme. It suggested payments of between £1,000 and £2,950 for each woman affected, which was estimated to cost the Treasury between £3.5 billion and £10.5 billion.
In December 2024, the government accepted the PHSO's finding of maladministration and apologised. However, it rejected the recommendation to pay compensation, stating that most women were aware of the changes and that public funds would be better spent on public services.
What happens next?
The government will now "retake" its decision, this time including the 2007 DWP report in its considerations. The review will begin immediately, but no specific timeline has been given for a final decision. Angela Madden, Chair of the WASPI campaign, called the announcement a "major step forward". The WASPI group is now taking legal advice on what the government's review means for their case.
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