Women’s State Pension Age: Ombudsman Report

Baroness Laing of Elderslie Excerpts

Thursday 16th May 2024 Commons Chamber

[Jim Shannon]

I thank the hon. Lady for that intervention. The occupational pension is another factor; it is incorporated in the plan that these people have made for their future. It is wonderful how you make a plan for the future and then the Government scupper it on you! All of a sudden, these ladies have found themselves in difficult circumstances, so I believe it is necessary to have a compensation scheme in place to help all of those ladies.

I will conclude with one more comment, ever mindful of the time limit that we all indicated we would keep to. I understand the magnitude of such a scheme, but we were able to get support quickly to households across the UK for cost of living and energy payments—something that I commend the Government on. That can be done on many occasions; we just need the commitment to make it happen. I know that the Government have the ability and the capacity to roll out all these schemes, so along with almost every other colleague in this House today, I sincerely ask that we prioritise finding a compensation formula and rolling it out. These women, our constituents—brave, courageous women—deserve no less, and we must ensure that we give them no less.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the SNP spokesman.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to follow the hon. Member for Strangford (Jim Shannon). Like everybody else, I commend my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) for securing this debate, and for all the work she has done in speaking up for 3.8 million affected women for all these years. I also commend all the other Members who have spoken in today’s debate; there have been powerful speeches, and powerful but harrowing stories of how various constituents have been affected by the increases in the state pension age for women.

There is a Back-Bench consensus today that the Government have dragged their heels, that a response is now long overdue, and that compensation is due. We have also disproved the nonsense that women should have known about the increases in their state pension age. Financial advisers and lawyers did not even know: as my hon. Friend the Member for Livingston (Hannah Bardell) said, divorces were granted on the basis of women accessing their pensions at the age of 60.

Some Labour Back Benchers today have rightly criticised the Government for their lack of action and for their policies elsewhere, but then somehow bristled at SNP speakers calling out the silence of their own Front Benchers. We are willing to work cross-party, but we also need pressure for action. If we do not call out what we think is wrongdoing, we are not doing the right thing for the WASPI women who we are all here to represent today.

We would not be in this Chamber today, debating this issue as parliamentarians, if not for fantastic campaigners such as Ayrshire WASPI Group, Cunninghame WASPI Group, WASPI in my constituency, WASPI Scotland, and of course the wider WASPI organisation. I pay tribute to my constituent Ann Hammell, who brought the issue to my attention in my early period as an MP in 2015. Again, it was heartening to hear so many MPs commend their own local campaigners.

Turning to the ombudsman’s report, there are a few key aspects: the findings and confirmation of maladministration in the DWP, compensation to be paid, and Government failures. I will explore each in turn. The ombudsman has not only confirmed that it believes that the DWP is guilty of maladministration, but has expressed outright anger at the belligerence of the Department and, by default, this Tory Government. I welcome the robust comments of the ombudsman’s chief executive, Rebecca Hilsenrath, who has stated:

“The UK’s national Ombudsman has made a finding of failings by DWP in this case and has ruled that the women affected are owed compensation. DWP has clearly indicated that it will refuse to comply. This is unacceptable.”

I agree with her.

It beggars belief that, in 2024, the Government are suddenly pretending that this ombudsman’s report is a bolt out of the blue and very complex. It is three years since the ombudsman found that the DWP was guilty of maladministration because of its lack of communication about increasing the state pension age. It is scandalous that the ombudsman is actually having to ask Parliament to find a way to create a mechanism to provide compensation for those affected. If the ombudsman does not trust the UK Government to do the right thing, I do not trust them either.

Unfortunately, at the moment I also do not trust the official Opposition, who have been too quiet on the report findings to date. That is why I have brought forward my private Member’s Bill, the State Pension Age (Compensation) Bill, which sets out a compensation framework. We need to remember that the Prime Minister was the Chancellor who boasted about setting up the furlough scheme in a couple of weeks for the covid lockdown. Clearly, if there is a Government will, there is a way, so why do the Government not have the will to get on with a compensation scheme for the WASPI women?

In the ombudsman’s report, compensation is unfortunately set at just level 4, which feels wrong. For the majority of the 3.8 million women affected, it feels like a smack in the face. Compensation of between £1,000 and £2,950 is an inadequate maximum payout. The WASPI APPG recommended level 6 for the worst affected, and my private Member’s Bill takes a similar approach. I have suggested a framework that follows the clear logic that those affected by the biggest increase in state pension age, while in effect having the shortest notice period, should receive the most compensation.

As for the 2.5 million women who have had to wait five years or more to access their pension, it would be absurd to award them just level 4 compensation of less than £3,000. In my framework, they would be allocated compensation at PHSO level 6, which is about £10,000. Those who have not had to wait quite as long, but who were still badly affected in some cases, will get levels 4 and 5, with a minority on lower levels. I thank Members from across the House who have signed my private Member’s Bill.

This subject has been debated in Parliament for nine years, and for over nine years these women and their families have been fighting for justice. It is tragic that, as has been repeated many times, the women are dying at a rate of 40,000 a year, or one WASPI woman every 13 minutes, and they are not getting the justice they deserve. This underlines that it is critical that Parliament takes action now.

However, there has not even been a suggestion on the way forward from the official Opposition. They should be putting proposals to the Government, and saying what they would do if they were in government. If their solution was accepted by the Government, they could then claim credit for getting compensation over the line. Instead, we have heard nothing from the Opposition—zip—apart from weasel words about listening. I hope the shadow Minister, the hon. Member for Wirral South (Alison McGovern), will change my mind and offer proposals during her summing up, but there was a bad example last week in the Scottish Parliament, when Labour MPs sat on their hands when it came to voting for compensation for the WASPI women. They had the temerity to get photographs taken with the campaigners, and to tell them that they backed them, but then they went into the Chamber in Holyrood, sat on their hands and actively abstained, which was disgraceful.

As I say, I hope the shadow Minister will bring forward proposals, but I would like her and the Minister responding to the debate to consider the constituents’ stories we have heard today, and a few of mine as well. Lynn was exhausted after working for 34 years in the NHS and agreed to take early retirement at 55, but she found out on her last day of work that it would be 11 years before she got the state pension, not the five years she anticipated. Nancy was widowed at the age of 54, while she was working part time, which was clearly traumatic emotionally and financially. She has suffered umpteen chronic health conditions while caring for her parents, but was forced to take NHS bank work just to survive.

Lesley, who has sometimes worked three jobs to make ends meet, was a carer for her partner when he had cancer, a carer for her dad when he had cancer, and had a period of travelling to Southampton every weekend to visit her aunt—superwoman efforts that would exhaust anybody. It is little wonder that she took early retirement age 56, only to discover later that she had to wait six years longer than she thought to access her pension.

Do not dare tell those women and others like them that they need to wait longer for justice. These are women who did not have maternity rights back in the day. They were paid less than men, and were more likely to work part time, and their private pensions were smaller, if they had them. In reality, pension age equalisation has further disadvantaged those women, especially as they were told that to get a full pension, they had to pay extra NI contributions. It is time that the right thing was done, and that right thing is fair and fast compensation now.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Minister.