Published On: Thu, Feb 8th, 2024
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WASPI women could be guaranteed compensation with payouts of £10k or more under new bill | Personal Finance | Finance

An MP has put forward a bill to get the DWP to put forward a compensation plan for women affected by the WASPI state pension issue.

Alan Brown shared stories of women affected by the issue in his constituency, urging for those in the WASPI generation to be given compensation payouts of £10,000 or more.

He told MPs: “The lack of resolution for the 3.8 million WASPI women is a disgrace. Those 3.8 million women were given the bombshell that their state pension age was going to increase from 60 to 66 just as they were about to retire and it was too late to do any proper financial planning.

“Many were already in ill health or worse, and others had taken early retirement and were planning to get by until age 60, when they thought they would receive their state pension.”

With the PHSO (Parliamentary and Health Service Ombudsman) currently deciding what compensation should be offered, he said level 6 of its remedy scale bandings should be applied, with payouts of £10,000 or more.

He said that as a minimum, the pensioners should get at least level five in compensation, with payouts of between £3,000 and £9,950.

The MP shared one story from a constituent, Marie, whose husband got cancer and had to stop working at 59. But due to the increase in her state pension age, she had to work in a physically demanding job for another seven years, while caring for him.

Mr Brown presented his bill, The State Pension Age (Compensation) Bill, as a ten minute rule bill, which allows an MP to put forward their case for a bill in a speech lasting 10 minutes.

The draft legislation has been listed for a second reading on Friday, April 19.

The investigation by the PHSO is set to conclude this year, after it previously established there was ‘maladministration’ in the way the state pension was increased for women from 60 to 65.

Mr Brown said: “I have countless examples of constituents who would have put more into private pensions and who would have topped up National Insurance contributions.

“I have examples of those who have had to use their savings, who have missed out on holidays and who have generally struggled to get by because of that lack of notification. Let us not forget that many of these women are well-qualified.

“They are intelligent, yet they are made to feel that it is somehow their fault that they did not know. The DWP’s denials make it worse for these women.”

A DWP spokesperson told previously: “The Government decided over 25 years ago it was going to make the state pension age the same for men and women.

“Both the High Court and Court of Appeal have supported the actions of the DWP under successive governments dating back to 1995 and the Supreme Court refused the claimants permission to appeal.”

State pension payments are increasing 8.5 percent in April, with the full basic state pension increasing from £156.20 a week to £169.50 a week. The full new state pension is going up from £203.85 a week to £221.20 a week.

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