Women’s Changed State Pension Age: Compensation

Rebecca Long Bailey Excerpts

Monday 17th March 2025 Westminster Hall

[Rebecca Long Bailey (Salford) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward. I thank the hon. Member for South Cotswolds (Dr Savage) for her passionate speech. My friend, the right hon. Member for South Holland and The Deepings (Sir John Hayes), made a very pertinent point earlier: the fundamental issue here is Government accountability—the ability of this place and citizens to hold the Government to account when they get something wrong. What we are seeing today is that accountability mechanism—that framework —being demolished before our very eyes. If the mechanisms that have been developed to hold Government to account are rendered impotent, which is what has happened to the ombudsman, that damages the very heart of democracy itself. That is how important this issue is.

The ombudsman was clear: these women suffered injustice, and compensation was owed to them. It was also clear that the Government should act on that, and it made the very rare decision to place its report, not before the Department for Work and Pensions, but before this place. It did that because it felt that the Department—under all Governments, not just this Government—was not capable of delivering justice for the women affected. And it was right, because what we have seen is a complete dismissal of the injustice that these women have suffered. Now, I do not believe that that is the intention of the Minister or of the Government, but they have the opportunity now to change course.

There is a very real prospect of a High Court judicial review. That will result in significant legal costs on the part of the Government—legal costs that they will have to justify to the taxpayer, given that the ombudsman’s report was very clear that compensation was owed. So will the Minister now look again at the case for compensation?

[Graham Stringer in the Chair]

[Sir John Hayes]

I rise for two purposes. The first is to put it on the record that the hon. Lady, alongside others, has made an outstanding contribution to this campaign; she has been a notable figure in this process. The second is to make a suggestion that she might put to the Government: why do the Government not meet a small delegation of MPs from all parties with a group of WASPI women? Let us see if we can thrash this out in a way that allows the Government to get off the hook and allows the WASPI women to receive the satisfaction they so richly deserve.

[Rebecca Long Bailey]

I completely agree with the right hon. Member. The all-party parliamentary group on this issue has extended an invitation to the Minister. We will of course widen the invitation to include women’s groups in accordance with the right hon. Member’s suggestion. The invitation is there. That would be a very good starting place because ultimately the only justice that can be secured is justice that involves the women themselves. To listen to what they want to propose to the Government would be a good starting place.

I want to ask the Minister a few questions. Given the prospect of a High Court judicial review, presumably when issuing the decision not to compensate, the Government must have carried out, if they were acting diligently, a legal risk assessment of the prospect of the success of potential future legal action. If that is the case, will the Minister place before the House a copy of that legal advice so that we can see what the Government considered at the time? Does he accept the ombudsman’s proposal that Ministers and MPs intervene to ensure justice is delivered, and does he agree that it would be prudent for the Government to make time for a parliamentary debate so that MPs across this House can have a vote on the issue on a non-partisan basis, as was intimated by the ombudsman?

Finally, will the Minister look again at the case for compensation? As I have stressed, I do not believe it is his intention to undermine democracy; nor is that the intention of the Government. Given the prospect of legal action, now would be an opportune time for the Minister to meet the groups that are campaigning on behalf of women and look at the different compensation mechanisms and mediation proposals that have been suggested.

--- Later in debate ---

[Torsten Bell]

The fact that people were widely aware that the state pension age was rising is indicative that it was not news to most people, even if they had not got the details on their specific circumstances. The 2006 research is now also the subject of live litigation, so I will resist the temptation to dive into the details, beyond directly addressing the point raised by the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) on the sample sized used in that survey. Returning to my old expertise in this area, the confidence intervals provided in that survey are certainly small enough to make it clear that a clear majority were aware that the state pension age was changing, so I do not think it is right to cast aspersions on that survey.

[Rebecca Long Bailey]

One of the datasets that the Government rely on to make their assertions, specifically the 90% figure, actually includes women who were not born in the 1950s. Can the Minister give us an exact figure as to how many women in that 90% category responded to the survey?

[Torsten Bell]

The 90% figure refers to the age group that best overlaps with women born in the 1950s, so that is the best available figure from that survey.

[Rebecca Long Bailey]

Will the Minister give way on that point?

[Torsten Bell]

I will make some progress because I have given the best answer that I can to my hon. Friend’s question.

The ombudsman is clear that redress and compensation should normally reflect individual impact, but it also acknowledges the challenges of assessing the individual circumstances of 3.5 million women, as recognised by the hon. Member for East Wiltshire (Danny Kruger) a few moments ago. It took the ombudsman nearly six years to look at just six cases; doing so for millions would take years and thousands of DWP staff.

In answer my hon. Friend the Member for Bedford (Mohammad Yasin), we considered a range of compensation options for women who lost opportunities as a result of the delay in sending letters. For example, we considered rules-based schemes, such as that which the Work and Pensions Committee suggested, and we also considered the possibility of paying limited compensation to a smaller group of women—for example, those on pension credit, as suggested by the hon. Member for Eastleigh.

However, many of those schemes would mean compensating women who were aware that the state pension age was increasing. Payments would not relate directly to the injustice in question but to benefit entitlement or the timeline for the policy change. Paying a flat rate to all 3.5 million women, regardless of whether they suffered injustice, would be neither fair nor proportionate. It would also not be affordable, as such compensation schemes would cost up to £10.5 billion. To directly address the question of my hon. Friend the Member for Falkirk (Euan Stainbank), the Government’s decision was not driven purely by cost.