WASPI campaigners have fought for years to get DWP compensation (Image: Getty)
WASPI campaigners were devastated to be told recently they would not get DWP compensation. Now a financial expert has issued a fresh warning about the controversy, as some people may not be aware of some key changes.
Labour announced recently that it would not award compensation to the 1950s-born generation of women represented by WASPI and others. The debate which has raged for many years is around the group of women who were impacted by the state pension age for women rising from 60 to 65 and then 66.
The campaigners make the case that they were not properly informed of the change by the DWP, and that many did not realise until the 11th hour, ruining their retirement plans. But the Government has decided it will not provide any compensation for the women.
In announcing the decision, Work and Pensions Secretary, Pat McFadden, told Parliament: “The evidence shows that the vast majority of 1950s-born women already knew the state pension age was increasing thanks to a wide range of public information, including through leaflets, education campaigns, information in GP surgeries, on TV, radio, cinema and online. To specifically compensate only those women who suffered injustice would require a scheme that could reliably verify the individual circumstances of millions of women.”
Tax accountant Grace Hardy, from Hardy Accounting, said there are some important lessons that need to be learnt from the debacle. She said: “Whenever the state pension age changes for any one individual, proactive written notification should be mandatory well in advance, not dependent on people checking Government websites or seeing general media campaigns.
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“The DWP knew exactly which cohorts would be affected and had their addresses; there was no technical barrier to writing to them.” A previous investigation by the Parliamentary and Health Service Ombudsman found there was ‘maladministration’ on the part of the DWP, as they should have sent letters to the women sooner.
The watchdog suggested payouts ranging from £1,000 to £2,950. Labour accepted the finding of maladministration and apologised for the historical errors, but decided against providing compensation.
A minimum notice period
Ms Hardy said the DWP should ensure better practice going forward. She urged: “Changes of this magnitude should have a minimum notice period enshrined in legislation for perhaps 10 years to allow genuine financial planning. The 2011 acceleration of timetable for women, giving some affected women as little as 18 months’ additional notice, was the specific step the Ombudsman found most problematic.”
She also said there should be a process for assessing communication failures and recommending remedies where the Government has to respond within a set timeframe, rather than allowing ministers to put off putting a decision. The final report from the Ombudsman with the compensation recommendations came out in March 2024, when Rishi Sunak was Prime Minister of the previous Conservative Government.
Labour issued a decision in December 2024, saying there would be no compensation, but it later decided to retract this, issuing a second decision in February 2026, again deciding there would be no payouts. Going forward, Ms Hardy warned there is a danger many people do not know about another looming change to the state pension system.
The state pension age, currently 66 for both men and women, is going up from April 2026. The access age will increase in stages to reach 67 by April 2028. Legislation is also in place for the access age to increase from 67 to 68, between 2044 and 2046.
Future DWP changes people may not know about
Ms Hardy said: “The first of those changes starts this April and it is reasonable to assume a significant proportion of those affected have not actively registered it.”
The expert warned: “These dates could change again, which is precisely the problem the system depends on people actively monitoring Government policy, rather than the government actively informing those affected.” There has been discussion about bringing forward the move from 67 to 68.
A previous report into the issue commissioned by the Government suggested accelerating the timetable, but the then Conservative Government did not take up the idea. Labour announced last year there would be another review of the state pension age, so this idea may be put on the table again.
In a general word of warning for people planning their finances, Ms Hardy said: “The overarching lesson is that the UK tax and benefits system is genuinely complex, changes frequently, and does not reliably notify those affected by changes.
“Treating your own financial position as something to actively and periodically review rather than something that will look after itself is probably the most valuable single habit anyone can develop.”
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