Thousands of women affected by the WASPI (Women Against State Pension Inequality) issue are entitled to DWP compensation, an ombudsman has ruled.
A final report from the Parliamentary and Health Service Ombudsman (PHSO) has concluded the DWP failed to adequately inform those affected when the state pension age for women was increased from 60 to 65, to equalise it with men.
PHSO chief executive, Rebecca Hilsenrath, said: “The UK’s national ombudsman has made a finding of failings by DWP in this case and has ruled that the women affected are owed compensation.
“DWP has clearly indicated that it will refuse to comply. This is unacceptable. The department must do the right thing and it must be held to account for failure to do so.
“Complainants should not have to wait and see whether DWP will take action to rectify its failings. Given the significant concerns we have that it will fail to act on our findings and given the need to make things right for the affected women as soon as possible, we have proactively asked Parliament to intervene and hold the Department to account.
“Parliament now needs to act swiftly, and make sure a compensation scheme is established. We think this will provide women with the quickest route to remedy.”
This final report comes after the Ombudsman previously determined there was “maladministration” in how the change was communicated, with the increase in the state pension age causing havoc for the retirement plans of many women.
The Ombudsman said the DWP had set out several reasons why it could not provide compensation, including the costs and resources involved.
The report said: “It [the DWP] told us it considers that providing remedy would be inconsistent with good administration or guidance published by HM Treasury (‘Managing Public Money’).
“It also told us that using taxpayer funds to pay compensation for the consequences of the maladministration would likely need parliamentary and Treasury approval and, potentially, primary legislation.”
The Ombudsman said as a result, the “most expedient” thing it could do is to bring the matter before Parliament.
The report stated: “This is a rare decision, but we consider it necessary in the circumstances.
“It would be unsatisfactory and artificial for complainants to have to ‘wait and see’ whether DWP will act on our findings and then almost certainly experience further delay if it does not.
“We are therefore asking Parliament to intervene and identify a mechanism for providing appropriate remedy. We consider this approach to be in the complainants’ best interests.
“It is, of course, open to DWP to forestall this process by acting on what we say to Parliament.”
More to follow…
