The WASPI campaign (Women Against State Pension Inequality) has issued an update about their work to get DWP compensation. The movement was dealt a blow recently as the DWP announced it would not provide compensation.

This was the second time the Labour Government issued a decision on the issue. Ministers first announced in December 2024 there would be no compensation, but WASPI successfully applied for a judicial review of the decision.

The campaigners were due to have their day in court in December 2025 but ministers then retracted the decision at the last minute, saying they would issue it again in light of new evidence. Lawyers representing the DWP then arranged an out-of-court settlement, paying out £120,000 to cover WASPI’s legal costs.

This raises the question of whether or not WASPI will challenge the fresh decision again with a judicial review. In an update on February 27, WASPI said: “Since our last update, WASPI’s legal team have undertaken a careful line by line scrutiny of the Government’s new decision and the barrister team has been fully briefed; we will meet with them in the coming days.

“We will update you on our next steps once we have received their advice.” The WASPI campaign is one of several groups who represent women born in the 1950s who were impacted when the state pension age for women increased from 60 to 65 and then 66.

They claim the women were not properly informed of the change and the DWP should have done more to tell them sooner. A previous investigation by the Parliamentary and Health Service Ombudsman found there was ‘maladministration’ by the DWP, as they should have sent out letters to the women sooner. The watchdog recommended paying the women compensation ranging from £1,000 and £2,950.

Government response

Labour has accepted this finding of maladministration, but stopped short of providing compensation. In announcing the second decision, Work and Pensions Secretary Pat McFadden, told MPs: “The evidence shows that the vast majority of 1950s-born women already knew the state pension age was increasing thanks to a wide range of public information, including through leaflets, education campaigns, information in GP surgeries, on TV, radio, cinema and online.

“To specifically compensate only those women who suffered injustice would require a scheme that could reliably verify the individual circumstances of millions of women.”

Lessons from the WASPI controversy

Grace Hardy, tax accountant at Hardy Accounting, said there are some key lessons to learn from the WASPI debacle. She said: “The overarching lesson is that the UK tax and benefits system is genuinely complex, changes frequently, and does not reliably notify those affected by changes.

“Treating your own financial position as something to actively and periodically review rather than something that will look after itself is probably the most valuable single habit anyone can develop.” She urged people not to assume that the current rules will be the same going forward.

She warned: “Pension ages, tax thresholds, allowances and benefit rules are all subject to change. Any plan that depends entirely on current rulesholding indefinitely is fragile.”

On this topic, the state pension age will soon be increasing again. The access age is now 66 for both men and women and will move up in stages from April 2026, rising to 67 by April 2028.

Ms Hardy pointed out some other financial details you should keep an eye on. She said: “Know what applies to you specifically. General media coverage tells you the average or headline rules.

“But your state pension age, your National Insurance record, your specific tax position, your pension entitlements these are individual. Use the Government Gateway to check your state pension forecast and National Insurance record.”

She also said it’s a good idea to get independent financial advice about big decisions, such as consolidating pensions, drawing down from defined benefit pensions, and inheritance planning. She warned: “These are areas where mistakes are costly and often irreversible.”