Women’s Changed State Pension Age: Compensation

Jeremy Corbyn Excerpts

Wednesday 15th January 2025 Westminster Hall

[Torsten Bell]

I really must make some progress because we are about to run out of time.

It would not be a reasonable or fair use of taxpayer money to pay compensation to people whose circumstances would be the same today even if the maladministration had never occurred. A compensation scheme would cost up to £10.5 billion, less than the scheme previously proposed by the right hon. Member for Hayes and Harlington (John McDonnell) but still a significant amount.

The ombudsman is clear that, as a matter of principle, redress and compensation should normally reflect individual impact. The Department considered at length whether a tailored scheme could be delivered, but it was simply not a viable option. The ombudsman’s report acknowledges the cost and administrative burden of assessing the individual circumstances of 3.5 million women born in the 1950s. Indeed, it took the ombudsman nearly six years to investigate just the six sample cases. To set up a scheme and invite 3.5 million women to set out their detailed personal circumstances would take years and thousands of staff.

[Jeremy Corbyn (Islington North) (Ind)]

Will the Minister give way on that point?

[Torsten Bell]

I must make some progress.

We also do not believe that paying a flat rate to all women would be a fair or proportionate use of taxpayers’ money. I want to address the questions asked by several hon. Members about the specific research findings. It is important to say that the evidence on what women knew about the state pension age changes is robust. The same research was used by the ombudsman, who clearly did not have concerns about its validity.

I have heard hon. Members make powerful speeches today and I understand the strength of feeling on this issue, not least from my aunt. Many women born in the 1950s worked hard in paid jobs, often balancing that with raising a family. The Government have a responsibility to take their concerns seriously, which is why Ministers listened, reflected and carefully considered this complex decision. As custodians of the public purse, however, we must also ensure that decisions are rooted in evidence and are fair to everyone.

The fact remains that the vast majority of women knew that the state pension age was increasing. Even for those who did not, we know that sending letters earlier would not have made a difference in most cases. [Interruption.] Although I know that that decision will be disappointing, as we are hearing, and many have been frustrated by watching this debate drag on for years, we believe it is the right course of action. Of course, it is also right that the Government should be held to account for that decision, as is happening today.

[Jeremy Corbyn]

I congratulate the Minister on his appointment. I think I am right in saying that it is unprecedented for the Government to reject in its entirety an ombudsman’s report and offer absolutely nothing. Those women were led up the garden path in the last election, and before that, by people saying that compensation was going to be paid. The Minister needs to explain why the Government are simply ignoring the plight of those women.

[Torsten Bell]

It is an important issue, and we have been listening to the plight of those women for many years—and rightly so. Important and powerful cases have been made by many hon. Members, but I have set out why the Government have made that decision.

We will continue to help women born in the 1950s and pensioners across the UK by investing a crucial £22 billion into NHS England this year and next, with consequentials for the Welsh and Scottish Governments.