Women’s State Pension Age: Financial Redress

Rebecca Long Bailey Excerpts

Thursday 3rd July 2025 Commons Chamber

[Rebecca Long Bailey (Salford) (Lab) [R]]

I beg to move,

That this House notes the Parliamentary and Health Service Ombudsman’s (PHSO) report on Women’s State Pension Age, HC 638, published in March 2024, which found that maladministration in the Department for Work and Pensions (DWP) communication about the Pensions Act 1995 resulted in complainants losing opportunities to make informed decisions about some things and to do some things differently, and diminished their sense of personal autonomy and financial control; further notes that there will likely be a significant number of women born in the 1950s who have suffered injustice because of maladministration in DWP’s communication about the Pensions Act 1995; and also notes that, given the scale of the impact of DWP’s maladministration, and the urgent need for a remedy, the PHSO took the rare but necessary step of asking Parliament to intervene, laying their report before Parliament under section 10(3) of the Parliamentary Commissioner Act 1967 and asked Parliament to identify a mechanism for providing appropriate remedy for those who have suffered injustice.

Following last night’s horrific news, I just want to send my deepest condolences to the family of Diogo Jota and his brother, and to the city of Liverpool.

I would like to pay tribute to the thousands of fearless women who have been campaigning relentlessly to secure justice on this matter for decades now, and to remember all those women who have died waiting for justice. My personal thanks go to the campaign groups who have provided briefings to the all-party parliamentary group on state pension inequality for women, including CASPI, WASPI, WASPI 2018, CEDAWinLAW, Pension Partners 4 Justice, Pension United, WASPI Scotland and 1950s Women of Wales, as well as many individuals who have been in touch. My thanks also go to the Backbench Business Committee for allowing this debate, and to numerous colleagues across the House who have been instrumental in campaigning for the women and in securing today’s debate.

As Lord Bryn Davies, co-chair of the APPG and a pensions expert, stated:

“The UK’s pension system was designed for men, by men. It systematically favoured men, with the result that they received higher state pensions and even higher private pensions. Hence, the gender pensions gap. The only feature that favoured women was that the National Insurance pension was paid to women from aged 60, whereas it was paid to men from aged 65.”

But in 2010, that single advantage was taken away, without consultation and without regard to the other factors that meant women of that era were worse off financially and ended up with worse pensions. That was bad enough. What was worse, though, is that they were not even told about it. Many women were left destitute; some even lost their homes.

These women were already disadvantaged and discriminated against. They began work in an era when it was legal to pay female workers less than men, and often stepped out of the workforce to raise families or look after loved ones because there was no wraparound care, losing out on not only paying stamps but paying into a private pension. Overnight, these disgraceful changes were dumped on them without their knowledge. Many had already handed in their notice at work, and in many cases they were forced to exist on meagre welfare benefits that left them living a hand-to-mouth existence.

Hundreds of women began to raise the alarm. When the previous Government failed to take action, they escalated their complaints to the Parliamentary and Health Service Ombudsman, which began a lengthy investigation spanning years, although it chose to focus on a sample of only six cases. Its report, published in March last year, uncovered internal Department for Work and Pensions memos from 2005 showing that officials knew that considerable numbers of women were unaware of the planned changes. While many women feel that the report did not go far enough on suggested redress, and that it was too limited in the cases that it assessed, it confirmed what the women already knew: that they had suffered injustice, that the DWP was guilty of maladministration in failing to properly communicate changes, and that redress was duly owed.

When the Secretary of State for Work and Pensions responded to the report in December, there was genuine hope that the scandal would finally end—it was there, in black and white. Sadly, it did not, and women were left shocked and angry. While the Government agreed with the finding of maladministration and apologised, no redress would be forthcoming. Further, contrary to the ombudsman, they actually felt that the majority of women did know about changes to their pension age, based on Department for Work and Pensions research, and that sending the women letters would not have been effective, which I am sure most people would agree is bizarre. It is pretty effective when people receive a bill addressed to them through their door, or a letter about a hospital appointment. It is also pretty effective on the very rare but joyous occasion that His Majesty’s Revenue and Customs gives people a tax rebate cheque. So, honestly, why would 1950s-born women have actively refused to open letters with their name on from the DWP? It makes no sense.

[Dame Caroline Dinenage (Gosport) (Con)]

The hon. Lady is making a powerful speech. What she says reflects some of the conversations I have had with WASPI women in my constituency about not only the distress this has caused them, but how so many of them simply did not receive the correspondence that they have been told they did receive over the years about the financial situation that was coming down the track. The hon. Lady pointed out that the PHSO report found maladministration, and that despite promising to address it in all their communications before the general election, the Government said that it was too burdensome to compensate on a flat scale. When that announcement was made, I asked the Secretary of State what else could be done to support these women, many of whom have really struggled as a result of this decision. I did not receive a particularly forthcoming response, so I wonder whether the hon. Lady has had any more joy in finding out what the Government are going to do to support these women if they cannot bring forward the financial support on which so many of them have missed out.

[Rebecca Long Bailey]

The hon. Lady has been a formidable campaigner for these women. In answer to her question, no, I have not had any joyous information from the Government as of yet, which is why we are here today. I will outline why I think the Government’s statement and response to the ombudsman’s report was misinformed. While I understand the financial difficulties the Government face, options are available, and cost should never be a barrier to addressing injustice.

Many of the campaign groups are clear that the statistics used by Government to justify no redress are misquoted and misinformed, painting a picture that is completely at odds with the experiences of thousands of impacted women, as the hon. Member for Gosport (Dame Caroline Dinenage) has outlined, the ombudsman’s findings and the results of independent research. Research by the Department for Work and Pensions in 2003 showed that only 43% of all women affected by the changes knew that their state pension age was changing. The research itself even comments that:

“This low figure provides cause for concern and shows that information about the increase in SPA is not reaching the group of individuals who arguably have the greatest need to be informed.”

Independent research, including a focus group study by Age UK from as late as 2011, has also found that many women believed that they were still going to retire with a state pension at 60.

Further, the ombudsman’s report also focused on the continued failure of the DWP to recognise and respond to this research and feedback. Indeed, this point was flagged by the Work and Pensions Committee in 2013 and the National Audit Office in 2016, but the DWP still failed to take any meaningful action.

[Sir John Hayes (South Holland and The Deepings) (Con)]

I pay tribute to the hon. Lady for her leadership of this campaign. The situation is worse still than she paints it to be, for the ombudsman made clear that the

“DWP has clearly indicated that it will refuse to comply”

with the ombudsman’s recommendations, inviting Parliament to step in to resolve the matter. This is officialdom closing ranks, is it not?

[Rebecca Long Bailey]

The right hon. Gentleman has been a formidable campaigner for the women affected and an ally in the campaign in this House. He is correct. I will explain in a moment how unprecedented it is for a Government to reject the ombudsman’s recommendations in this way, and how dangerous it is, in fact, for our democracy and for citizens’ ability to hold their Governments to account.

I will turn back to the statistics that the Government relied on in their response to the ombudsman’s report. Instead of the clear findings that I have outlined, the Government relied on abstract figures from research carried out in 2004 and 2006 by the Department for Work and Pensions, which suggested that 73% and 90%, respectively, of women born in the 1950s knew that their own state pension age was increasing, but that is not correct. I must flag this with the Minister for clarity: the question asked in the surveys was crucial. It was, “Do you know that the broad state pension age is due to increase at some point in the future?”. It was not, “Do you know that your own state pension age is going to increase?”. It is wrong, in my view, to make the assertion that 73% and 90% of women knew that their state pension age was changing, because the facts prove that they simply did not.

Next, when an ombudsman makes recommendations to Government, as the right hon. Member for South Holland and The Deepings (Sir John Hayes) has alluded to, the usual course of action is for the Government to accept them. Further, on this occasion, the ombudsman made the incredibly rare decision to lodge its report before Parliament, not before the Department for Work and Pensions, which it did because, based on its dealings with the DWP, it already feared and knew that the report would be ignored. It is clear that the ombudsman realised this was an important issue, and that it wanted Government to listen.

There have been only eight other occasions where the ombudsman has felt the need to put down a special report in this way, the first being in 1978. All resulted in the full implementation of the recommendations save one, the Earl report. In that case, the Environment Agency still complied with three out of the four recommendations, and on the fourth implemented an alternative compensation offer.

I cannot stress enough that the decision to reject the ombudsman’s recommendations in full is unprecedented, and is, in fact, dangerous, as it sets a precedent that regardless of what an independent adjudicator recommends concerning state-level injustice, the Government can now ignore them. It strips away one of the only levers that citizens have to hold the Government of the time to account.

All the amazing campaign groups that we in this House work with are clear: this has been a state injustice. It has caused significant harm to these women, and while welcome, a limited Government apology is, without any material redress, not acceptable for a grave injustice that has driven so many into debt or poverty.

[Stephen Flynn (Aberdeen South) (SNP)]

I thank the hon. Lady for giving way and congratulate her on securing this debate today. She has been a very powerful advocate for the WASPI campaigners not just in England and Wales, but in Scotland, too, and that is recognised by them. Does she agree that over recent weeks we have seen that where there is a will, there is way? If her colleagues on the Labour Benches were to use their new-found power, perhaps we could find a way of getting the Government to right this historic and grievous wrong.

[Rebecca Long Bailey]

I thank the hon. Member for his suggestion. He is a fantastic campaigner for 1950s women in Scotland and has done an enormous amount of work in this House to support their cause.

As I said earlier, we all recognise the difficulties that the Government face. They inherited a difficult financial situation, but that is no excuse to deny these women justice. Financial options are available, some of which I shall outline, and some of which my colleagues will outline, too.

As well as refuting the findings of the ombudsman, the Government cite cost and administrative burdens as barriers, but it is important to stress that there have been other large-scale compensation schemes created in response to DWP maladministration. The Equitable Life Compensation Scheme is a key example.

[Rachel Gilmour (Tiverton and Minehead) (LD)]

I congratulate the hon. Lady profoundly on securing this much-needed debate. Does she agree that it is shameful that Labour made personal pledges to WASPI women over social media as a vehicle to get elected, but then tossed aside those promises and turned its back on more than 7,000 women, including Gill in Tiverton and Helen in Bampton in my constituency, as well as those across the length and breadth of the country? Does she recognise, as I do, that 74% of the British public support fair compensation for WASPI women?

[Rebecca Long Bailey]

The hon. Lady has been a fantastic campaigner for her constituents during her time in this House. I say in response that this issue unites the House; we are all angry about the injustice that these women have faced, and we want the Government to take action. Spanning various Governments and various Administrations, these women have had to fight relentlessly just for what they are owed, and that is not acceptable. I have no doubt that there are numerous colleagues at Cabinet level who agree with the women’s cause. They may be struggling to find options and answers, and that is what we are here today to provide. I hope that they are listened to and acted on, because injustice is injustice. If we are saying that victims of one injustice can be compensated by the Government, but that victims of another are not so deserving, we are travelling down a very dangerous path. There are options to cover the cost and ensure that there is no heavy administrative burden, and I will give a few of them.

The ombudsman’s guidance on financial remedy sets out its suggestion at level four on the severity of injustice scale, and it estimates that such remedy would involve public spending of between £3.5 billion and £10.5 billion. Campaigners have suggested that an earlier stage—level five—was under consideration, and that would cost between £10 billion and £31 billion. In both cases, as Lord Bryn Davies of Brixton has highlighted, that recommendation and, indeed, any other scheme would not preclude tapering the amount paid, which would bring down costs considerably.

WASPI and its sister campaigns suggest a bell curve model. They have highlighted the fact that other large compensation schemes for DWP maladministration have been viable, and proposed that any financial remedy could allocate the most compensation to those who have had the shortest notice of the longest delay to their state pension age—in other words, supporting those most heavily impacted in a bell curve model. They state that redress must be speedy, simple and sensitive, and they want to avoid legal action. They have asked the Government to enter into talks to address this very issue.

The WASPI group proposes that this remedy could take the form of a one-off payment that fairly takes that into account, but that level four should not be a ceiling, given that not all circumstances are identical to the six sample claimants. WASPI Scotland has also highlighted how a scheme could be operated relatively easily, using DWP records of dates of birth or national insurance prefixes, on either an opt-in or an opt-out basis. That information is readily available and would not require complex application systems or the processing of such applications.

[Ellie Chowns (North Herefordshire) (Green)]

The hon. Lady is making an extremely powerful case about this long-standing injustice. As she has pointed out, the WASPI campaigners are making really constructive suggestions to resolve the matter, offering to reach out and sit around the table with the Government. Does she share my frustration that the Government are refusing to do so, effectively forcing a court process, which is just leading to longer and longer delays, when there is such a clear injustice and an unprecedented rejection of the PHSO’s recommendation.

[Rebecca Long Bailey]

The hon. Lady is right. She, too, is a fantastic advocate for the women in her constituency. These women should not be forced to go through lengthy court battles, and the Government must recognise the cost of having to undertake those court battles versus the amount that they would actually pay through a redress scheme. Ultimately, the court is likely to find in favour of these women based on the facts that we have been presented with as parliamentarians. Indeed, CEDAWinLAW and 1950s Women of Wales both strongly support a mediation route towards redress, via an early neutral evaluation of groups’ asks towards mediation with the Secretary of State for Work and Pensions via mediators. More broadly, they raise concerns that discrimination needs to be factored into any redress mechanism, stating that the roll-out of state pension ages potentially conflicts with the UN convention on the elimination of all forms of discrimination against women—CEDAW—treaty, which the UK signed in 1981. As such, the Government should implement a temporary special measure to guarantee an adequate, non-discriminatory pension.

[Christine Jardine (Edinburgh West) (LD)]

One of the first constituents who came to me eight years ago was a WASPI woman. Does the hon. Lady agree that, after so many years, so much compromise and so much willingness to talk to the Government, one of the things that matters most to these women is not so much the amount of money but the actuality and significance of being compensated?

[Rebecca Long Bailey]

The hon. Lady is spot on. The women have suffered an injustice, and they have been ignored. They should not have had to fight for so long. The sad fact is that already so many women have died waiting to see justice. What will it take to fix this? Will it take an ITV drama to shine a light on what has happened before everybody gets angry enough to do something about it? I do not know the answer to that, but what I do know is that the facts are clear. Even the ombudsman’s report sets that out, and the Government need to act urgently. The hon. Lady has been a fantastic campaigner in this House over the years. and I am sure the women are truly thankful for her support.

The 1950s Women of Wales propose, in line with CEDAWinLAW, that redress could be an initial lump sum to allow swift financial relief, with additional payments over a five-year period. Even the previous Chair of the Work and Pensions Committee suggested a scheme. He wrote to the then Secretary of State for Work and Pensions to suggest that a rules-based scheme be considered. The letter describes a system where payments are adjusted within a range, based on the ombudsman’s severity of injustice scale, to reflect the extent of change in the individual state pension age and the notice of the change the individual received. It would be quick to administer, he said, and inexpensive compared with a more bespoke scheme. He further suggested that there should also be flexibility for individuals to make a case for additional compensation for direct loss. And that Select Committee Chair is now a Minister in the Department for Work and Pensions! Who knew? Perhaps the Minister could sit down and have a cup of tea with himself to discuss the plans he had before he entered office.

Any scheme must be responsible and financially sustainable, so let us have a look at some options on that, too.

[Jim Shannon (Strangford) (DUP)]

rose—

[Jim Shannon]

There are 77,000 WASPI women in Northern Ireland, 7,000 of them in Strangford. Does the hon. Lady appreciate their palpable anger about how they have been mistreated and about the injustice that they wish to see addressed? On behalf of those 7,000 constituents of mine, I seek the same thing as the hon. Lady and all of us in this Chamber today.

[Rebecca Long Bailey]

The hon. Gentleman is a powerful advocate for women in Northern Ireland. He is right: what has happened is wrong, plain and simple. We need to see action today. I promise I am coming to the end, Madam Deputy Speaker—I do not want to try your patience.

There are options to make sure that schemes are financially sustainable. WASPI has calculated that HM Treasury has saved a whopping £181 billion by increasing the state pension age alone. Other options include applying a 1% to 2% wealth tax on assets over £10 million, which would raise up to £22 billion a year, or equalising capital gains tax with income tax rates, which would raise £15.2 billion a year. Applying national insurance to investment income would raise £8.6 billion a year. Ending stealth subsidies on banks could raise up to £55 billion over the next five years—something even Gordon Brown has advocated.

Cost does not need to be, and should not be, a barrier to justice. In January the Deputy Ombudsman told the Work and Pensions Committee that the DWP at the time knew that the women did not know, and that they failed to act. He said:

“if you accept this maladministration and you accept people were affected by that maladministration, there is a conversation about how you factor cost into the need to do justice.”

The trauma, hardship, poverty and sheer stress that these women have been put through for a decade must make justice for them a matter of urgency.

I have a lot of time for the Minister. I call on him to get round the table with these women and to listen to them. I ask him to listen to the evidence, put considerations of financial redress for 1950s-born women who have suffered back on the table and allow full and adequate parliamentary scrutiny for any proposal, as the ombudsman intended.

--- Later in debate ---

[Rebecca Long Bailey]

I want to thank the whole range of colleagues who have spoken today. It has been a fantastic collegiate debate that has shown the House at its best. For those outside of the Chamber who are watching, the campaign continues. It is a campaign that brings so many of us together, and there are so many formidable campaigners in this Chamber who need to be celebrated.

I know that the Minister is in a difficult position, and I have a lot of time for him, as I say. I know that he is bound by the Government’s current position on this issue, but I want to pick up on some of the information he gave in his speech. He said that I referred to a piece of research from 2024, but it was actually from 2003, and it is research that the ombudsman itself relies on in saying that 43% of women did not know that the state pension age was increasing. The Minister again made the point about letters being ineffective, but he must understand that to people watching this debate, that is an absurd thing to say. I know that he says that DWP research states that, but the research is absurd and does not really have any basis in reality.

I do not want the Minister to go down in history as the man who denied justice for the 1950s-born women— I honestly do not. I want to see action on this, and I want him to go down as the person who finally managed to award these women justice. He has to understand that the arguments being put forward by the Government are absurd to say the least. In fact, in denying the ombudsman’s report, the argument is akin to arguing that the world is flat.

[John McDonnell]

It is certainly not an argument that the Resolution Foundation would have put forward when the Minister was director of it.

[Rebecca Long Bailey]

The right hon. Gentleman is right; it is not. That is why I place so much hope in the Minister to take action on this.

To conclude, there were two statements made by colleagues that stood out for me. The first was from the right hon. Member for South Holland and The Deepings (Sir John Hayes), who said that in the name of decency, justice must be done. The Minister must recognise that, so I urge him to get round the table with the women and present a package before Parliament that we can all support and celebrate. As the right hon. Member for Hayes and Harlington (John McDonnell) said, we are not going to give up until justice is done, and neither are the women.

Question put and agreed to.

Resolved,

That this House notes the Parliamentary and Health Service Ombudsman’s (PHSO) report on Women’s State Pension Age, HC 638, published in March 2024, which found that maladministration in the Department for Work and Pensions (DWP) communication about the Pensions Act 1995 resulted in complainants losing opportunities to make informed decisions about some things and to do some things differently, and diminished their sense of personal autonomy and financial control; further notes that there will likely be a significant number of women born in the 1950s who have suffered injustice because of maladministration in DWP’s communication about the Pensions Act 1995; and also notes that, given the scale of the impact of DWP’s maladministration, and the urgent need for a remedy, the PHSO took the rare but necessary step of asking Parliament to intervene, laying their report before Parliament under section 10(3) of the Parliamentary Commissioner Act 1967 and asked Parliament to identify a mechanism for providing appropriate remedy for those who have suffered injustice.