Shropshire Star

Scottish Labour had hoped for ‘compromise’ on Waspi compensation

The Labour-led UK Government has said there will be no financial compensation for women impacted by the change to the state pension age.

By contributor By Craig Paton, PA Scotland Deputy Political Editor
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Supporting image for story: Scottish Labour had hoped for ‘compromise’ on Waspi compensation
Women Against State Pension Inequality campaigners staged a protest outside Parliament on the day of the Budget in October (PA)

Scottish Labour hoped for a “compromise” on compensation for Waspi campaigners, the party’s social justice spokesman has said.

The Labour-led UK Government announced on Tuesday there will be no financial compensation for women impacted by the change to the state pension age, with Work and Pensions Secretary Liz Kendall saying it was an “extremely difficult decision”.

A report from the Ombudsman found maladministration at the hands of the UK government, which Ms Kendall accepted, while she also apologised for a 28-month delay in writing to women impacted by the changes.

Head and shoulders photo of Liz Kendall speaking
Work and Pensions Secretary Liz Kendall said the UK Government does not believe paying compensation ‘would be fair or proportionate to taxpayers’ (Lucy North/PA)

In a statement, she 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.

“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 between £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.”

Responding to the news, Scottish Labour social security spokesman Paul O’Kane said: “Many will be disappointed that no compensation is being offered to the thousands of women impacted by the Tory decision to raise their pension age without proper notice.

“Of course the UK Government should be focused on fixing the economic mess it inherited, but in recognising this injustice we would hope to have seen a compromise position that would have allowed for some form of compensation for the Waspi women most in need from this long running failure.”

Mr O’Kane added it is “right that the UK Government has recognised the injustice suffered by the Waspi women”.