Women’s Changed State Pension Age: Compensation Debate

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Department: Department for Work and Pensions

Women’s Changed State Pension Age: Compensation

Mike Martin Excerpts
Wednesday 15th January 2025

(3 days, 10 hours ago)

Westminster Hall
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Torsten Bell Portrait Torsten Bell
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I thank my hon. Friend for his intervention and for his brief congratulations on my appointment prior to his wider comments. I would say gently that he and I both stood on the same manifesto which did not promise to provide compensation, and lots of Members have talked about trust in this Chamber. There was a clear choice not to make that promise in the manifesto.

Mike Martin Portrait Mike Martin (Tunbridge Wells) (LD)
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Will the hon. Gentleman give way?

Torsten Bell Portrait Torsten Bell
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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.