Vithanage Erandi Kawshalya Madhushani Jade Times Staff
V.E.K. Madhushani is a Jadetimes news reporter covering Business.
Campaigners Condemn “Unjustified” Decision, Calling It an Insult to Millions
The government has faced fierce backlash after rejecting compensation for millions of women impacted by changes to the state pension age. Campaigners argue that 3.6 million women born in the 1950s were inadequately informed of the increase, leaving many unprepared and facing financial hardship.
Government’s Response and Rejection of Payouts
Work and Pensions Secretary Liz Kendall issued an apology for a 28-month delay in notifying affected women but dismissed calls for financial compensation. She cited "considerable awareness" of the changes and claimed there was no evidence that earlier notification would have altered women’s retirement plans or avoided financial loss.
Kendall said the proposed compensation, which could cost up to £10.5 billion, was “not fair or proportionate to taxpayers” and reiterated that the government would instead focus on learning lessons for future pension reforms.
“Given the vast majority of women knew the state pension age was increasing, the government does not believe paying a flat rate to all women is justified,” she said.
Prime Minister Sir Keir Starmer echoed this stance, stressing the need to balance the concerns of affected women with the broader financial burden on taxpayers.
Fury from Campaigners and Ombudsman’s Recommendations
The Women Against State Pension Inequality (WASPI) campaign, which has long fought for compensation, condemned the government’s decision as a “bizarre and unjustified move”.
Angela Madden, Chair of WASPI, criticized the rejection of the Parliamentary and Health Service Ombudsman’s (PHSO) recommendation for compensation of £1,000 to £2,950 per woman. She called the decision an “insult” and questioned the point of having an ombudsman if their findings could simply be ignored.
“This is a day of shame for the government,” said Madden. “Millions of women were wronged, and this decision offers no justice for the financial and emotional distress they’ve endured.”
The WASPI campaign had initially called for payouts of at least £10,000 per woman, arguing that many had suffered severe financial hardship and had to delay their retirement unexpectedly.
Background: How the Pension Age Saga Unfolded
Historically, women were eligible to claim their state pension at 60, five years earlier than men. However, under the 1995 Pensions Act, the qualifying age for women was gradually raised to align with men, reaching 65 by 2020.
In 2011, the coalition government accelerated this process, bringing forward the changes. By 2018, the pension age for women had already increased to 65.
The rapid implementation, combined with poor communication, left many women unaware of the change. Thousands reported being financially unprepared for the delay, causing distress and hardship.
Calls for Action and Criticism from Opposition Parties
The government’s decision has sparked widespread criticism:
- Liberal Democrats: Steve Darling, the party’s work and pensions spokesperson, described the decision as “a day of shame”, accusing ministers of turning their backs on wronged women.
- Conservatives: While previously in government, the Tories did not respond to the ombudsman’s report. Shadow work and pensions secretary Helen Whately urged Labour to “own” the decision to deny compensation.
Lessons for the Future
While rejecting compensation, the government has pledged to develop an action plan to prevent similar issues in the future.
- Improved communication methods will be implemented to ensure affected individuals are notified well in advance.
- Future changes to the state pension age will be communicated “clearly and efficiently”, with modern tools to reach those impacted.
A Petition for Justice
The widespread anger over the government’s stance is reflected in public support for the WASPI campaign. A parliamentary petition demanding a compensation system attracted 135,000 signatures before the government’s formal response was announced.
Despite the government’s apology, the rejection of compensation has left campaigners, opposition parties, and affected women furious. The decision highlights ongoing tension over fairness in pension reforms, with critics arguing that many women are being denied justice for what they see as a fundamental failure of communication and planning.
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