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British women hit by state pension change should be compensated, report says

Published 21/03/2024, 13:56
© Reuters. FILE PHOTO: People look out from Greenwich Park, with Canary Wharf in the distance, in London, Britain June 22, 2023. REUTERS/Hannah McKay

By Alistair Smout

LONDON (Reuters) - British women affected by an unexpected rise in the age at which they were entitled to receive a state pension should be compensated as the government communicated the change inadequately, a report on the issue said on Thursday.

The Parliamentary and Health Service Ombudsman (PHSO) said that as the Department for Work and Pensions (DWP) had not acknowledged its failings and "refused to comply" with the finding that the women were owed compensation, it would be up to parliament to act.

The state pension age (SPA) had been 65 for men and 60 for women since the 1940s, and in 1995 plans were made to raise the retirement age for women so it was the same as men in a staged process between 2010 and 2020.

However, in 2011, the government brought forward the increase in women's SPA to 65 from 2018, and increased it to 66 for both men and women in 2020.

While campaigners had hoped for at least 10,000 pounds ($12,700) for each of the estimated 3.6 million women impacted by the change, the PHSO said each case should be considered on its own merits.

PHSO Chief Executive Rebecca Hilsenrath said the DWP had not apologised for its failings and its stance was "unacceptable," adding she had "significant concerns... that it will fail to act on our findings".

"Parliament now needs to act swiftly, and make sure a compensation scheme is established," she said in a statement.

In 2019, the High Court ruled in favour of the government in a legal case which challenged the earlier introduction of the older retirement age, finding it had no legal duty to communicate the changes in SPA and was entitled to change it without prior consultation.

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But the PHSO found there was a requirement to communicate the changes as a matter of good administration.

"We will consider the Ombudsman's report and respond in due course, having cooperated fully throughout this investigation," a DWP spokesperson said.

"The government has always been committed to supporting all pensioners in a sustainable way that gives them a dignified retirement whilst also being fair to them and taxpayers."

Scottish National Party lawmaker Alan Brown said he urged the government to support a private members' bill he was bringing to parliament on compensation for the women, saying "justice delayed is justice denied".

Private members bills are introduced by individual lawmakers, but it is rare for them to be passed unless they are supported or adopted by the government.

($1 = 0.7865 pounds)

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