US Edition
Women hit by the state pension age change may have to wait years for compensation, a former pensions minister has warned.
Sir Steve Webb, who served in David Cameron’s coalition government, said that unless the scheme was straightforward, payments should not be expected before the next general election.
In its report, published on Thursday, the Parliamentary and Health Service Ombudsman (PHSO) found that the Department for Work and Pensions (DWP) had failed to adequately communicate changes to the women’s state pension age, with the number affected running into the thousands.
It recommended a Level 4 payout of between £1,000 and £2,950, and asked Parliament to intervene swiftly and set a framework to compensate them. It also said that complainants should not have to wait and see whether DWP would take action to rectify its failings.
But Sir Steve said: “It all depends on whether it’s a straightforward scheme or a tailored scheme. If it’s literally anyone born between two dates gets £3,000, it should be straightforward.
“The closest parallel would be cost of living payments to pensioners. Payments were made very quickly, in a matter of months. If it’s a flat figure, it could just about be turned around before the election.
“Anything more complex means that payments would be after. It would be years if you had a scheme where people had to apply individually and have their cases assessed.”
It comes after campaign group Women Against State Pension Inequality (Waspi) called on the Government to respond to the ombudsman’s report by Monday.
Waspi chairman Angela Madden said: “Rishi Sunak is asking for time to consider the report, but these issues have been quite clear for nearly a decade. Since the start of our campaign 270,000 women affected by this have now died. There just isn’t any more time to lose. The ombudsman’s report is long, but we are sure the Prime Minister can read 100 pages over the course of a weekend.
“Conservative ministers really will be trying the patience of all the 1950s-born women who have suffered, and their families, if the Government does not come out with some sort of positive response by Monday.
“[Mr Sunak] has proved with the Post Office scandal that legislation can be brought in front of MPs quickly if the political will is there. The independent watchdog has ruled that compensation is due. A scheme must now be set up. It’s that simple.”
The campaign estimates that 3.6 million women have been affected and says 111 of them die every day on average.
If the Government fails to report before Tuesday, 2,103 could die during Parliament’s 19 day Easter recess alone. Should it take another year to resolve, the number could exceed 40,000.
On a campaign visit to Derbyshire on Friday, Rishi Sunak said the Government would look through the PHSO’s report “carefully” before providing “a considered and thoughtful response”.
He added: “More broadly, what I would say is I want a country where people can put in all their lives and have the dignity that they deserve in retirement.”
Speaking in Parliament on Thursday, Leader of the Commons Penny Mordaunt suggested an update should come before Parliament’s recess, which begins on Wednesday.
Ms Mordaunt said: “I certainly know that the department will want to consider what is announced today with regard to Waspi women. I know this is a concern across the House, and I’m sure that the minister will want to come and update the House at the earliest opportunity – they will want time to consider what is said today, but I hope that an update can be given to colleagues before recess.”
On Friday, Labour shadow cabinet minister Emily Thornberry said her party would not make any commitments until the Government had put forward its response, which she said should happen “next week”.
She told Sky News: “It has to be done in the right way. At the moment, we have to make sure that the Government doesn’t wriggle out of this.”
She added: “The Government has to make a decision about what is the appropriate way of compensating these women, and then they have to make a decision about how we make sure that Whitehall never makes this mistake again.”
DWP said it was considering the findings of the report and next steps but did not commit to a timeframe. A spokesman said: “We will consider the ombudsman’s report and respond in due course, having cooperated fully throughout this investigation.
“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.
“The state pension is the foundation of income in retirement and will remain so as we deliver a further 8.5pc rise in April which will increase the state pension for 12 million pensioners by £900.”