Another Kick in the Teeth for WASPI Women

Last Thursday, Pat McFadden, the Secretary for State at the Department for Work and Pensions, delivered, what the government hopes, to be the final statement (and we suggest kick in the teeth) for WASPI Women.

WASPI (Women Against State Pension Inequality) has been fighting for years for compensation in that women born in the 1950s should have been given greater notice and time to plan for the relatively fast increase of just 5 years in state pension ages fro women from age 60 to 65 and then 66.  The argument being not enough notice = not enough time to plan = poverty in retirement.

This battle has raged for years, in a time when many women stayed at home to raise families, thereby not building up private or company pension provision with a major reliance on state pensions in retirement.

The Parliamentary and Health Service Ombudsman (PHSO) ruled after a further review (after a  2007 Department for Work and Pensions report came to light into the effectiveness of automatic pension forecast letters and that affected women should be awarded compensation.

The estimated cost is over £10bn.

Last week, McFadden confirmed that “As there will be no scheme to pay compensation to 1950s-born women, we do not deem it would be appropriate to provide the sample complainants in the PHSO’s investigation with a financial remedy.”

Comment

In short, despite the independent PHSO’s ruling, the government will not be compensating affected women.  Not surprising given the current state of the country’s finances but, we suggest this is unlikely to be the end of the matter.

If we, as financial planners or a pension provider failed in its contractual obligation to protect pensions savers and their incomes or not give them enough information, then we are required, by law to compensation, yet governments and government departments don’t have to compensate for their failings.  Yet again, a government that is breaking its own laws.  Appalling.