The Department for Work and Pensions (DWP) has been urged to “recognise the case for urgency” in responding to the recommendations in the Parliamentary and Health Service Ombudsman’s (PHSO) final report on compensation for millions of women born in the 1950s affected by changes to their State Pension age.
Lord Davies of Brixton warned peers in the House of Lords that the delay “is leaving the people affected prey to scammers, who are offering to assist them in making claims” adding that “this issue needs to be resolved as quickly as practical”. The Labour peer added that the Ombudsman “made it clear that these women suffered from maladministration and that they are entitled to redress”.
Baroness Sherlock, the Parliamentary Under-Secretary of State for the Department for Work and Pensions (DWP) responded: “To be absolutely clear, because there has been no response to the report, there is no compensation scheme. Anyone claiming to offer it is scamming and nobody should touch it – please can that message go out loud and clear.”
She added that the UK Government is “looking very closely at the findings of the ombudsman and will respond as soon as is practicable”.
The Women Against State Pension Inequality (WASPI) campaign issued a similar warning this summer when a “deeply concerning” spike in fake compensation claim forms appeared online. At the time, WASPI reported that multiple unofficial websites had emerged, claiming those impacted by short-notice State Pension age increases can claim up to £2,950, depending on their circumstances.
Campaigners said the websites, which appeared to originate outside the UK, reportedly claim that women born in the 1950s can get payouts through submitting compensation forms, however, these are callous criminals preying on older people.
The PHSO report published on March 21 stated that “Parliament must urgently identify a mechanism for providing that appropriate remedy” and recommended compensation equivalent to Level four on its banding scale, which is worth between £1,000 and £2,950.
No compensation scheme has been announced, any website offering help to claim is bogus and should be reported to Action Fraud. Pensioners who may have been tricked by scammers in Scotland should call Police Scotland on 101.
Earlier this week, Pensions Minister Emma Reynolds confirmed that the DWP have been “considering the costs of setting up a compensation scheme” for those affected.
In a written response to Steve Darling, the Liberal Democrat shadow work and pensions spokesperson on Tuesday, Ms Reynolds explained that as part of the DWP’s “work on the Ombudsman’s investigation and report” it had found that the PHSO’s estimate to compensate all women at level four – between around £3.5billion and £10.5bn – did not take administrative costs into account.
The Pensions Minister said: “As part of our work on the Ombudsman’s investigation and report, we have been considering the costs of setting up a compensation scheme.
“The Ombudsman used DWP’s broad estimates in their report published 21 March 2024, stating that ‘Compensating all women born in the 1950s at the level 4 range would involve spending between around £3.5 billion and £10.5 billion of public funds’. This estimate excludes administration costs.”
Ms Reynolds added: “This government is giving its full and proper consideration to all areas of the Ombudsman’s report.
“Once this work has been undertaken, we will be in a position to outline our approach.”
Mr Darling had asked DWP if it had “undertaken financial modelling for a potential compensation scheme for issues raised” in the PHSO’s final report.