The UK government is reconsidering its decision to deny compensation to 3.6 million women born in the 1950s who were affected by state pension age changes. These women say they were not properly informed about the increase in their pension age, leaving many financially unprepared for retirement.
Why is the Government Reopening the Decision?
A new development has triggered the review: a 2007 survey that wasn’t shown to the then-Work and Pensions Secretary, Liz Kendall, during the earlier decision-making process. Now, current Pensions Secretary Pat McFadden says the government will re-examine the situation in light of this new information.
He made it clear that reconsidering the decision doesn’t mean compensation is guaranteed, but it does mark a significant step forward for campaigners who’ve been fighting for justice for years.
What’s the Issue All About?
For decades, the state pension age was 60 for women and 65 for men. But under the 1995 Pensions Act, the UK government started the process of raising women’s pension age to match men’s, aiming for full equality by 2020.
Then, under the 2011 Pensions Act, the changes were sped up, with women’s state pension age reaching 65 by 2018. Many women born in the 1950s say they were not properly informed about the changes, and had little time to adjust their financial plans.
The government has apologised for a 28-month delay in sending letters to inform the women affected, but it previously refused to offer any financial compensation.
What Are Campaigners Saying?
Angela Madden, chair of the Women Against State Pension Inequality (WASPI) group, welcomed the government’s decision to revisit the issue. She said:
“The government now knows it got it wrong and we are pleased they are now trying to do it properly. We hope they also try to do it quickly.”
WASPI has long argued that these women deserve immediate compensation, with calls for at least £10,000 per person. The group is also taking legal action through a judicial review, funded by supporters, to challenge the government’s refusal to offer redress.
What Has the Ombudsman Recommended?
In 2023, the Parliamentary and Health Service Ombudsman (PHSO) recommended compensation of between £1,000 and £2,950 per person. However, this recommendation is not legally binding, and the government rejected it, arguing that:
- There was no direct financial loss proven
- A blanket payment would cost £10.5 billion, which they said wasn’t fair to taxpayers
Despite this, the ombudsman’s report was a key moment in the campaign for justice, and many saw it as official recognition that the women had been poorly treated.
What Happens Next?
There’s no timeline yet for when the government will finish reviewing the decision. Pat McFadden said officials would check to ensure no other important documents were missed in the original review.
Meanwhile, the WASPI judicial review is still scheduled to be heard in December, though the government has now updated the court with its latest decision.
Timeline of Key Events:
| Year | Event |
|---|---|
| 1995 | Pensions Act passed to equalise pension age for men and women |
| 2010 | Coalition government accelerates timetable |
| 2011 | New law raises women’s state pension age to 65 by 2018 |
| 2023 | Ombudsman recommends £1,000–£2,950 in compensation |
| 2024 | Government rejects payout, legal challenge begins |
| Nov 2025 | Government reopens compensation decision after new evidence surfaces |
The government’s decision to revisit the state pension compensation issue gives fresh hope to millions of women who feel they were unfairly treated. While there’s still no guarantee of financial payouts, this is a major step forward for campaigners who’ve waited years for justice.
The coming months — and the outcome of the judicial review — could be crucial in shaping what happens next for the women affected.
FAQs
1. Why is the UK government re-examining the pension compensation decision?
A 2007 survey that wasn’t considered earlier has come to light, prompting the government to revisit the original decision.
2. Who is affected by the state pension age changes?
Around 3.6 million women born in the 1950s were impacted by the rapid rise in the pension age from 60 to 65.
3. What compensation was previously recommended?
The Parliamentary Ombudsman recommended payments of £1,000 to £2,950 per person, but the government rejected this advice.
4. Is there a chance of getting more than the recommended amount?
Campaigners are demanding at least £10,000 per person, but no final compensation figure has been agreed.
5. When will a final decision be made?
There is no clear timeline yet, but the matter is also being reviewed in court, with a judicial review hearing scheduled for December 2025.
