The Parliamentary and Health Service Ombudsman has called on the Department for Work and Pensions to consider paying compensation to women born in the 1950s hit by the increase in the State Pension age.

A report published today by the Ombudsman has found that thousands of women may have been affected by the DWP’s failure to adequately inform them that the State Pension age had changed.

Campaign group Waspi has been fighting for a review of the changes and compensation for several years.

The Ombudsman has outlined potential compensation payments of between £1,000 and £3,000.

Rebecca Hisenrath, chief executive of the Ombudsman, said Parliament will need to act as the DWP has, “indicated that it will refuse to comply.”

She said: “Complainants should not have to wait and see whether DWP will take action to rectify its failings. Given the significant concerns we have that it will fail to act on our findings and given the need to make things right for the affected women as soon as possible, we have proactively asked Parliament to intervene and hold the department to account.

“Parliament now needs to act swiftly, and make sure a compensation scheme is established. We think this will provide women with the quickest route to remedy.”

The retirement age for women was increased from 60 to 65 after 2010, in line with men, and will go up to 66 by 2020, and to 67 by 2028.

Women born in the 1950s claimed the increase was unfair because they were not given sufficient time to prepare for life without the State Pension and argued the policy was discriminatory. The aim of the policy was to equalise the State Pension age for men and women.

The State Pension age between 1948 and 2010 was 60 for women and 65 for men. Legislation in 1995 increased women's pension age to 65 between 2010 and 2020.

The Waspi group says that women were not fully aware of the changes or their impact and say they have been cheated out of many years of State Pension, causing hardship for thousands of women. 

The 1995 Pensions Act and subsequent legislation raised the State Pension age for women born on or after 6 April 1950.

The Ombudsman investigated complaints that, since 1995, DWP has failed to provide accurate, adequate and timely information about areas of State Pension reform.

The report found that the DWP’s handling of the changes meant some women lost opportunities to make informed decisions about their finances.

You can read the ombudsman report here.

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