Women’s Changed State Pension Age: Compensation

Richard Burgon Excerpts

Wednesday 15th January 2025 Westminster Hall

[Torsten Bell]

We have already had a long statement in the main Chamber. The point of debates like this one today is to make sure that the Government are held accountable for their decisions.

[Richard Burgon (Leeds East) (Ind)]

Will the Minister give way?

[Torsten Bell]

I will make some progress and give way later on. There has also been, as has been raised, the opportunity for all parties to call for more time and for votes in the main Chamber. I am sure the right hon. Member for South Holland and The Deepings will take that up with his party in the months ahead. I will make some progress and take more interventions as we proceed.

The ombudsman’s investigation concerned the more specific question of how changes in the state pension age were communicated to women, like my aunt, born in the 1950s. The Government started sending personalised letters in April 2009, but the ombudsman concluded we should have started 28 months earlier. My right hon. Friend the Secretary of State has apologised for that delay. We are determined to learn the lessons so that we avoid similar mistakes happening again. First, we will work with the ombudsman to develop a detailed action plan, identifying and addressing lessons from this and other PHSO investigations. Secondly, we are committed to providing clear and sufficient notice of any changes in the state pension age so that people can plan for their retirement. Thirdly, the Secretary of State has directed the Department to develop a clear and transparent communication strategy for state pension changes; work on that has already begun. This will build on changes that are already under way, such as our online “Check your State Pension forecast” service, which provides a forecast of the level of state pension, but also information about when people can take it.

The ombudsman looked at six cases and concluded that DWP provided adequate and accurate information on changes to the state pension age between 1995 and 2004. However, they also found that decisions made between 2005 and 2007 led to a 28-month delay in sending out letters to women born in the 1950s, many of whom are here with us today. The ombudsman said that those delays did not result in women suffering from direct financial loss, but that there was maladministration, and we agree.

--- Later in debate ---

[Richard Burgon]

Will the Minister give way?

[Torsten Bell]

I think I should make some progress and give way later. I want to get on to the bit that most Members might not agree with, but at least will explain what we are doing, because we do not agree with the ombudsman’s approach to injustice or indeed to remedy. The right hon. Member for New Forest East (Sir Julian Lewis) and the hon. Member for Salford (Rebecca Long Bailey) rightly noted that is unusual, and it should be unusual. However it is also not unprecedented.

The decision not to introduce a compensation scheme was difficult and complex. The ombudsman assumed, despite evidence to the contrary, that sending letters earlier would have fundamentally changed what women knew and how they acted. However research from 2014 shows that only one in four people who are sent unsolicited letters actually remembers receiving and reading them. The ombudsman does not address this evidence.

--- Later in debate ---

[Torsten Bell]

I was not going to go into this detail, but the right hon. Member for South Holland and The Deepings is inviting me to return to some of my past lives with the details of surveys. The 43% figure that he is referring to refers to all women. What the ombudsman did not do is look at the same survey and look at the women who were affected by this change, who were obviously slightly later in life and much more likely to know about their state pension age. That is where the higher figures I am quoting come from. It is from the same survey as used by the ombudsman, but it is focused on the women who are actually affected by the change.

[Richard Burgon]

I thank the Minister for giving way and I congratulate him on his appointment. However, to get to the crux of this: when the decision our Government have made on this was announced—and there is much to be proud of in what it has done since the general election—my jaw hit the floor. I was flabbergasted. It is my belief that the vast majority of Labour MPs could not believe it when it was announced. That pales into insignificance compared to the reaction of the WASPI women who I and others have been proud to support in my Leeds East constituency and elsewhere. My last point is that, before this decision was made, I said to the WASPI women outside Parliament that justice delayed is justice denied. This is worse than that. I thought I was just trying to compel our Government to hurry up and make a decision. This is not justice delayed is justice denied. As it stands, unless we do something, this is justice denied full stop.

[Torsten Bell]

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.