The WASPI campaign short for Women Against State Pension Inequality was formed to represent women born in the 1950s who were significantly affected by changes to the state pension age.
For decades, women could expect to start receiving their pension at age 60. However, legislative changes, particularly the Pensions Act 1995 and the Pensions Act 2011, raised the state pension age for women to 65 and later to 66 to align it with men.
While the move towards gender equality in retirement age was expected, many women say they received inadequate or delayed information from the Department for Work and Pensions (DWP), leaving them financially and emotionally unprepared for retirement. Many had already left work or made life plans based on the original pension age.
Ombudsman Investigation and Proposed Compensation
In a major development, the Parliamentary and Health Service Ombudsman (PHSO) concluded that the DWP committed maladministration in the way it handled communication around the pension age changes. Specifically, the Ombudsman found that the DWP failed to adequately inform women of the changes in time for them to make necessary adjustments to their retirement plans.
As a result, the Ombudsman recommended compensation for the affected women. While the exact amount varied, the recommendation included a “Level 4” band of compensation, valued at up to £2,950.
The proposed payments were not designed to cover the full amount of lost income but rather to acknowledge the distress and hardship caused by poor communication and mismanagement.
DWP’s Response and Warning Over Compensation Hopes
Despite these findings, the Department for Work and Pensions has now issued a clear warning: it will not be paying out the recommended compensation. Citing serious financial implications, the DWP said that paying compensation on this scale would cost the government between £3.5 billion and £10.5 billion funds it claims cannot be reasonably allocated at this time.
Officials also argued that many women were already aware of the pension age changes, referring to survey data suggesting a high level of public understanding. They maintain that the steps taken by the DWP over the years to communicate the updates were, overall, reasonable.
This stance has deeply disappointed many campaigners who were hopeful that the Ombudsman’s findings would result in justice and financial redress. The DWP’s firm response effectively ends any immediate hope of automatic compensation for the estimated 3.8 million women affected by the changes.
Public and Political Reaction
The decision has sparked significant backlash from both the public and politicians. Many Labour MPs and cross-party campaigners have criticized the government for turning its back on vulnerable women who had no time to adjust to a major change in their financial future. Some have argued that this reflects a broader failure in government accountability and support for older women.
WASPI campaigners have vowed not to give up. They insist the fight for fair treatment is not over and are now urging Parliament to step in and reconsider the compensation framework. Public sympathy for the women remains high, especially as many are still grappling with poverty, debt, or prolonged work into their late 60s.
Looking Ahead
While the DWP has issued a warning against any expectation of a compensation payout, the issue is far from settled. The WASPI campaign continues to gather support and lobby Parliament. Meanwhile, legal and political observers are watching closely to see whether further pressure could lead to a reconsideration or alternative support for the women affected.
The situation serves as a powerful reminder of the importance of clear, timely communication when major policy shifts are introduced especially those with life-altering consequences.