Ministers have again refused to pay compensation to women affected by changes to the state pension age, sparking renewed anger among campaigners who say millions have been left in the dark about reforms that have upended their pension plans.
The government revisited the matter after a previously unpublished document emerged, but again concluded that compensation was neither justified nor affordable. Activists argue that around 3.6 million women born in the 1950s were not adequately informed about the increase in the statutory retirement age, which was brought in line with that of men.
The organization Women Against State Pension Inequality (Waspi) said the latest decision showed “complete disregard” for those affected.
Waspi leader Angela Madden (pictured) said: “The government has struggled with this for months, only to come to exactly the conclusion it always wanted. This is a disgraceful political decision by a small group of very powerful people who have decided that the harm suffered by millions of ordinary women simply doesn’t matter.”
The government claims that the majority of women affected were aware that the state pension age had been raised, citing years of public information campaigns through leaflets, doctors’ offices, television, radio, cinemas and online channels. However, many women say they noticed the changes late in life and have little time left to adjust financially.
In 2024, the Parliamentary and Health Services Ombudsman recommended compensation of between £1,000 and £2,950 for affected women after finding a failure in the way changes were communicated. While the ombudsman can make recommendations, he cannot force the government to act, and ministers have previously rejected the proposal.
Speaking in the House of Commons, Pat McFadden said the government accepted that letters informing women of the changes “could have been sent sooner”, repeating an apology previously made by Liz Kendall.
However, McFadden said ministers also agreed with the Ombudsman’s earlier conclusion that the delay had not resulted in “direct financial loss”. He added that evidence suggests that most women would not have read “an unsolicited pension letter” even if it had arrived earlier, and that those least informed about pensions were also the least likely to be involved in such correspondence.
The latest review was prompted by the discovery of a 2007 survey that had not been shared with ministers during previous consultations. McFadden said officials have since verified that no other relevant documents had been missed.
In a statement, the government said a blanket compensation scheme could cost up to £10.3 billion and would be unfair as it would affect many women who were already aware of the changes. More targeted individual compensation would be impractical to administer, it said.
Opposition politicians criticized the decision. Liberal Democrat work and pensions spokesman Steve Darling said affected women would feel “completely cheated”.
“They were given false hope in the fall, and now that hope has been dashed,” he said.
The renewed rejection is likely to increase pressure on ministers as campaigners warn the problem is not going away and that confidence in the pension system has been significantly damaged.
