Women’s Changed State Pension Age: Compensation

Debate between Rebecca Long Bailey and Torsten Bell

Monday 17th March 2025 Westminster Hall

[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.