I appreciate the significant challenges faced by women affected by changes to the State Pension age (SPA). Women born in the 1950s need support.
As you will know, the Parliamentary and Health Service Ombudsman (PHSO) published the findings of its investigation into the impact of SPA equalisation on women in March 2024. Importantly, the investigation did not concern the principle of SPA equalisation, which successive Governments have supported, but rather the way in which this was conveyed to those affected. The Government fully accepts the Ombudsman’s finding that previous administrations committed maladministration when it came to communicating changes to the SPA and it has apologised for that failure.
However, given that most women knew the SPA was increasing, the Government does not believe that paying a flat rate of compensation at a cost of up to £10.5 billion would be a fair or proportionate use of taxpayers’ money. Ministers are clear that this has been a difficult decision to take, but it is the right course of action as current circumstances cannot be ignored. This includes the fact that the previous Government failed to set aside funding for any compensation scheme, while leaving a significant hole in the public finances that needed to be filled.
That said, I remain committed to supporting women in retirement. This Government was the first to meet with representatives of the WASPI campaign for eight years to listen to their concerns directly. I also backed a 4.1% increase for the new State Pension, thanks to the triple lock. The Government has pledged to maintain the triple lock by spending £31 billion over the next five years which will help safeguard pensioners’ living standards.
Lessons need to be learnt from what has happened over recent decades to ensure everyone can properly plan for their retirement. Information about any future changes to the SPA must be communicated in a timely and targeted way.
Thank you for contacting me about this issue.
Best wishes
Rt Hon Hilary Benn
MP for Leeds South
Secretary of State for Northern Ireland