The Ombudsman previously recommended payouts up to £3,000
The Women Against State Pension Inequality (WASPI) campaign is eagerly awaiting a new compensation decision from the Department for Work and Pensions (DWP). The WASPI campaign, along with other campaign groups, has been fighting for over a decade to get DWP compensation for women born in the 1950s. This generation of women was impacted by the increase in the state pension age for women from 60 to 65 and then 66.
They argue that these women were not adequately informed about the changes and should receive payouts as a result, as many were left uninformed until the last moment, causing their retirement plans to be thrown into chaos. An inquiry by the Parliamentary and Health Service Ombudsman suggested compensation amounts ranging from £1,000 to £2,950. The watchdog concluded that the DWP should have sent letters to the affected women earlier.
However, in December 2024, the Labour Government announced they would not be providing any compensation, arguing that most women were aware of the change. They also contended that sending out the letters earlier would have made little difference.
Despite this setback, WASPI successfully applied for a judicial review, which was scheduled for December 2025. Then at the last minute, the DWP announced it would retract its decision not to award compensation, and that this decision would be reconsidered.
A new decision to be issued
This meant that the judicial review did not proceed, with the DWP settling out of court with the WASPI campaign. The department agreed to shell out £180,000 towards WASPI’s legal costs and also committed to a timetable for issuing a new decision.
In a court document shared by WASPI, the DWP pledged to “approach all aspects of the decision with a fresh and open mind”. As part of the settlement, ministers also agreed to “take and communicate a new decision in response to the Parliamentary and Health Service Ombudsman’s investigation within three months of the date of this order”.
Given that the order was issued on December 3, this means the deadline for the new decision would be Tuesday, March 3. The DWP was asked for an update about the new decision.
What is the current state pension age?
In light of the WASPI fiasco, those planning for their retirement may want to check when their state pension age is. The state pension age for both men and women currently stands at 66.
However, this will be changing imminently, as the access age will gradually increase from 66 to 67 between April 2026 and April 2028. The state pension age is set to rise again from 67 to 68 between April 2044 and April 2046.
Last year, the Government announced there would be another review of the state pension age. The last review, published in 2023, recommended bringing forward the timetable for the move from 67 to 68, but this suggestion was not taken up by the then Conservative Government.
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