🙏 Women’s State Pension Age Communication: PHSO Report

• The Secretary of State for Work and Pensions, Liz Kendall, addressed the House regarding the Parliamentary and Health Service Ombudsman’s (PHSO) investigation into the communication of the state pension age changes for women born in the 1950s.

• The government acknowledges the importance of the state pension as a foundation for retirement security and has committed to the pensions triple lock, which will increase the new state pension by over £470 annually from April and provide an additional £31 billion over the Parliament.

• The PHSO’s report focused on the communication of the state pension age changes, not on the policy decisions made in 1995 and 2011 to increase the age, which were deemed lawful.

• The government accepts that there was a 28-month delay in sending out notification letters to the affected women between 2005 and 2007, which was classified as maladministration. An apology was issued for this delay.

• Despite acknowledging the maladministration, the government disagrees with the PHSO’s approach to remedy and compensation, arguing that most women were already aware of the pension age increase and that earlier letters would not have significantly impacted their planning.

• The government has decided not to implement a compensation scheme. Reasons include the high administrative burden and cost of processing individual claims, the lack of direct financial loss proven from the delay, and concerns over the fairness of a flat-rate compensation model costing up to £10.5 billion.

• Instead of financial compensation, the government plans to work with the PHSO to develop an action plan to prevent future maladministration, ensure clear notices of future pension age changes, and establish a modern communication strategy using up-to-date methods.

• The decision to not offer compensation was criticized by various MPs across parties, who felt it was a betrayal of the WASPI (Women Against State Pension Inequality) campaigners and questioned the government’s commitment to justice and fairness.

• MPs also expressed concerns about the precedent set by dismissing the ombudsman’s recommendations and the impact on future trust in the ombudsman’s role.

• Despite the criticism, the government reiterated its broader commitments to supporting pensioners, including protecting the triple lock, investing in the NHS, and enhancing pension pots through legislative measures like the pension schemes Bill.

• The Secretary of State defended the government’s position by emphasizing responsible decision-making given the inherited economic challenges and promised to continue supporting women through various government policies.

The session exhibits a high level of disagreement, warranting a rating of 4. This is evident from the intense exchanges and the strong opposition voiced by multiple MPs across different parties. The Secretary of State, Liz Kendall, faced significant criticism from various members, including from her own party, for the government’s decision not to offer financial compensation to the 1950s-born women affected by the state pension age changes, despite acknowledging maladministration. Opposition MPs from the Conservative, Liberal Democrat, SNP, and other parties, along with some Labour MPs, expressed disappointment and anger, describing the decision as a ‘betrayal’ and a ‘disappointment’. The session also saw direct challenges to the government’s decision-making process and its impact on trust in political institutions, with several MPs questioning the government’s dismissal of the ombudsman’s recommendations. The intensity of the disagreement and the emotional weight of the arguments presented elevate the rating.