Labour has said it will not compensate WASPI pensioners (Image: Getty)
The not to compensate the WASPI (Women Against State Pension Inequality) generation has been branded a “slap in the face” for the women.
The Government told the Commons this week there would be no compensation for the 1950s-born women who were affected when their age increased from 60 to 65 and then to 66.
Many of the women did not know about the change, throwing into disarray their retirement plans, and it was ruled previously by the Parliamentary and Health Service Ombudsman that there was “maladministration” in the ‘s efforts to inform people.
David Kindness, accountant and writer at , said: “The Government’s choice not to compensate WASPI women is a slap in the face to those who built their retirement plans around promises that were broken without warning.
“Many of these women have faced years of financial stress and emotional turmoil because of changes to the pension age that weren’t communicated properly.”
In announcing the decision not to compensate the women, Sir ‘s work and pensions minister Liz Kendall said that in “the vast majority” of cases the women knew about the change.
She also pointed out that the Ombudsman previously suggested there was no direct financial loss for the women from the ‘s lack of communication.
But Mr Kindness sees things differently. He said: “Saying there’s no direct financial loss doesn’t erase the disruption this caused to their lives. It’s not just about the money—it’s about fairness.
“Compensation wasn’t unreasonable. The Ombudsman’s recommendation of £1,000 to £2,950 per person struck a balance. It wouldn’t have solved every problem, but it would have shown that someone was taking responsibility for the damage done.
“Rejecting this outright sends a message that the Government doesn’t feel accountable to the people it’s supposed to serve.”
The Government said it would be sure to give “clear and sufficient” notice of future changes to the age, which is increasing from the current 66 for both men and women, up to 67 and then to 68.
Mr Kindness suggested some other important lessons: “The biggest takeaway is that clear communication matters. If policies are going to change, people need to know as early as possible so they can adjust their plans.
Don’t miss…
“On a personal level, this highlights the importance of diversifying retirement strategies. You can’t rely on a single source of income because, as we’ve seen here, even longstanding systems can fail to protect you.”
Andrew Gosselin, expert and senior contributor at , said the Government’s decision not to grant any compensation “has left many feeling ignored”.
He also issued a warning for pension savers in light of the WASPI debacle: “You can’t rely on anyone else to manage your retirement.
“Yes, the Government plays a role, but you have to stay informed and prepare for changes yourself. Diversify your plans, keep an eye on policy developments, and don’t leave your future to chance. Retirement is too important to leave in someone else’s hands entirely.”
But he also said there is a lesson here as regards Government accountability: “Decisions like this need to be examined and debated, not just accepted at face value.
“People deserve transparency and accountability, especially when it comes to something as critical as their pensions.”