Millions of women affected by a decision to increase the state pension age will not receive a penny in compensation, the Government has announced.
This is despite a bombshell ombudsman report that suggested Parliament should deliver payments of up to £2,995 to affected women.
Angela Madden, chair of Women Against State Pension Inequality (WASPI), said: “The Government has today made an unprecedented political choice to ignore the clear recommendations of an independent watchdog which ordered ministers urgently to compensate WASPI women nine months ago.
“This is a bizarre and totally unjustified move which will leave everyone asking what the point of an ombudsman is if ministers can simply ignore their decisions. It feels like a decision that would make the likes of Boris Johnson and Donald Trump blush.
“The idea that an ‘action plan’ to avoid such mistakes in future should be the result of a six-year Ombudsman’s investigation is an insult both to the women and to the PHSO process.
“An overwhelming majority of MPs back WASPI’s calls for fair compensation and all options remain on the table. Parliament must now seek an alternative mechanism to force this issue on to the order paper so justice can be done.”
Pensions Secretary Liz Kendall said she has concluded “there should be no scheme of financial compensation to 1950s-born women” despite report by ombudsman recommending blanket payouts.
She insisted that WASPI women “suffered no direct financial loss” and adds there was “considerable awareness” of changes to state pension age.
This is despite articles on Ms Kendall’s website proclaiming support for their campaign in 2019 which stated “this injustice can’t go on”.
Liberal Democrat Work and Pensions spokesperson Steve Darling MP said: “Today is a day of shame for the government.
“The new government has turned its back on millions of pension-age women who were wronged through no fault of their own, ignoring the independent Ombudsman’s recommendations, and that is frankly disgraceful.”
He slammed the Government’s announcement as “nothing short of a betrayal” of WASPI women.
The campaign group had called for payments of at least £10,000 each.
Ms Kendall said: “These two facts: that most women knew the state pension age was increasing and that letters aren’t as significant as the Ombudsman says, as well as other reasons, have informed our conclusion that there should be no scheme of financial compensation to 1950s-born women, in response to the Ombudsman’s report.”
She added: “The alternative put forward in the report is for a flat-rate compensation scheme, at level four of the Ombudsman’s scale of injustice, this would provide £1,000 to £2,950 per person at a total cost of £3.5 billion and £10.5 billion.
“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 at a cost of up to £10.5 billion would be fair or proportionate to taxpayers.”
The Government faced pressure to deliver payouts to more than 3.5million women after the watchdog’s report in March.
More than 300,000 WASPI women have died since the fight for compensation launched.
Sir Keir Starmer said he understood the concerns of the Waspi women but the Government had to protect the taxpayer.
Asked if he understood the anger of those affected, the Prime Minister told broadcasters: “I do understand their concerns. The ombudsman’s findings were clear in relation to maladministration, but also clear about the lack of direct financial injustice, as the ombudsman saw it.
“That’s why we’ve taken the decision that we’ve taken.
“But I do understand, of course, the concern of the Waspi women. But also I have to take into account whether it’s right at the moment to impose a further burden on the taxpayer, which is what it would be.”
