Women’s State Pension Age Communication: PHSO Report

Debate between Viscount Younger of Leckie and Baroness Humphreys

Tuesday 17th December 2024 Lords Chamber

[Viscount Younger of Leckie (Con)]

My Lords, it looks like we have the graveyard slot this evening. I am very sorry indeed that the House is so empty for such an important and serious subject. In fact, it feels more like a bilateral session—or perhaps I should say trilateral, if we bear in mind the Liberal Democrats. However, I thank the Minister for repeating this Statement made earlier in the other place. On this side, we are acutely aware of the long-running campaign by the WASPI women. The decision made today by this new Government will be a great, and in some cases devastating, disappointment for them.

We understand the strength of feeling on this. The Minister will not need reminding that in March the previous Government responded to the long-awaited report by the ombudsman, the PHSO, and I recall repeating the Statement in this House. The House should be reminded that it took well over five years for the ombudsman to produce its final report—the result of an investigation spanning over 30 years. When the report came, as the Statement outlines, the ombudsman took the unusual step of laying the report in Parliament and asking Parliament to make decisions in respect of remedy, instead of making recommendations itself. So here we are today with the remedy made by this Government.

I say at the outset that we take considerable offence at the right honourable Secretary of State for Work and Pensions in the other place politicising this. She said this afternoon that her Government would make the decisions in reference to the WASPI matter when the previous Government were not prepared to make them. This is unbecoming, and the Minister knows full well that it is simply incorrect. Will she agree that when the PHSO report was published in March, any Government would have needed the time to reflect on it? The election, she will know, was called in June, and back in March we said we would provide a report to the House once we had considered the findings. Where are we now? Is that not exactly what this Government have done? Will the Minister acknowledge this?

In making the decision that

“there should be no scheme of financial compensation to 1950s-born women”,

the Government have repeated their long-playing record on their economic inheritance, as I heard in the other place earlier today. Can the Minister confirm how much of today’s decision—her Government dismissing the significance that the ombudsman placed on the delayed letters sent to the women—was based on this, and how much was based on the Government’s own analysis, from the PHSO report, that the case of the WASPI women was weak?

I am glad that the Government have taken responsibility for the events that occurred on the last Labour Government’s watch—namely, for the decisions made between 2005 and 2007. They led to a 28-month delay in sending out letters, which the ombudsman identified as maladministration. As I said earlier, while I am sure that the Government’s Statement today will be a disappointment to many WASPI women, I understand why they have taken this decision. As the Minister said, paying a flat compensation rate to all women at a cost of up to £10.5 billion would not be a fair or proportionate use of taxpayers’ money.

On lessons learned, can the Minister tell us more about the action plan that the Government are working on with the ombudsman? What are the timings, and will it be published? That would at least give some comfort to those involved. If the Chancellor deems that future economic circumstances allow it, will the Government rethink their policy? Is this a temporary decision made in respect of the WASPI women, or is there a plan at any stage in the future to look to a financial remedy? That is a very interesting point.

Have the Government made any assessment of the number of women whose cases are strong? If not, why not? Why have they decided not to pay compensation to this cohort at least? Can the Minister explain how they are going to communicate this devastating news to the WASPI women individually, estimated to be in excess of 3 million, beyond the Statement issued today? What actions will the Government take to support the women, including some necessary pastoral or mental health assistance? Is there a plan? Given that the Government have not agreed with the ombudsman and have overridden some of its views in the report, such as disagreeing with the importance attached to the non-arrival of the letters, how much confidence do they now have in the ombudsman?

In a letter from the Minister to all Peers received today, for which I give thanks, she writes:

“Even taking the difficult decisions we are faced with in government, we feel a deep sense of responsibility to ensure that every pensioner gets the security and dignity in retirement that they deserve”.


I say quite so, and warm words indeed, but does she really mean this? I have to contrast it with the Conservative’s support for pensioners—the action on the ground. This includes introducing and protecting the triple lock, which has seen the state pension increase by £3,700 since 2010, meaning that there are now 200,000 fewer pensioners living in absolute poverty. The Conservatives introduced pension reforms, ensuring that everyone is automatically enrolled in a workplace pension scheme. The Conservatives introduced the winter fuel payment, ensuring that no pensioner has to live in a freezing cold home.

I suspect the House will know where this is leading. This announcement is another blow—one of many that have hit pensioners since 4 July. Regarding the Government’s decision to cut the winter fuel allowance, can the Minister update us on the actual numbers of pensioners who have taken up pension credit, not just percentages? Is she comfortable with the current pension credit uptake numbers? How is this affecting the £1.6 billion announced and the expected saving for the Treasury resulting from the cut in the winter fuel allowance?

With these myriad questions, I look forward to the Minister’s responses on another very difficult day for the Government.

[Baroness Humphreys (LD)]

My Lords, today will be a day of disappointment for many women. They will feel that this new Government, by ignoring the independent ombudsman’s recommendations, have turned their back on the millions of pension-age women who were wronged through no fault of their own. That has to be of concern.

Liberal Democrats have long backed calls for women born in the 1950s affected by the pension changes to receive proper compensation for the Government’s failure to properly notify them of the changes, and have long supported the ombudsman’s findings. Today’s announcement is a hammer-blow to these women, who have fought tirelessly for many years to be properly compensated. I appreciate that the Government have had to make difficult decisions, but have they chosen to ignore the PHSO’s recommendations because they disagree with the findings or because they do not want to find the money to rightly compensate these women?

The PHSO’s ruling in March recommended that some women should get a payout and an apology. Obviously today they have received an apology, but they will not receive a penny of compensation for the maladministration found by the PHSO. Will the Minister outline why the Government have chosen to accept one half of the recommendation but not the other?

One WASPI woman dies every 13 minutes while this appalling scandal continues. Today’s announcement will be devastating for the WASPI community, which has campaigned tirelessly to rectify the maladministration. Does the Minister really think that today’s announcement is a fair solution?

Finally, in her letter to us today, and in the Statement, the Minister promises that this Government will protect the pensions triple lock, so that the yearly state pension is forecast to increase by up to £1,900 by the end of this Parliament. I welcome this promise. The pensions triple lock was a Lib Dem policy adopted by the coalition Government and I am proud of it, but this will be advantageous to all pensioners, not merely the WASPI women. Sadly, it in no way compensates these women for their losses. My colleagues in the other place have promised that they will continue to press Ministers to give those affected the fair treatment they deserve.