The government has responded to calls to review Waspi women compensation payouts after an Ombudsman ruled they were due.
The Department for Work and Pensions (DWP) had been urged to compensate women affected by historical underpayments and errors.
Labour MP Mark Hendrick asked Work and Pensions Secretary, DWP boss Mel Stride, about “whether he plans to undertake a review into the potential merits of issuing compensation to all women impact by changes to the state pension age” today.
Pensions minister Paul Maynard said in response to Mr Hendrick that an update will be on its way: "In laying the report before Parliament at the end of March, the Ombudsman has brought matters to the attention of this House, and a further update to the house will be provided once the report's findings have been fully considered."
This comes after SNP MP Alan Brown urged the UK Government to “do the right thing” and the Labour Party “to commit” to his State Pension Age (Compensation) Bill “if they were to win an election”.
The bill’s second reading was rescheduled to May 17 after the Kilmarnock and Loudoun MP shared on social media that “Westminster wouldn’t provide debate time” on April 19.
The Department for Work and Pensions (DWP) had been urged to compensate women affected by historical underpayments and errors.
Sums of up to £2,950 are expected.
Here is a look at what has happened:
What has the ombudsman been looking at?
The ombudsman has investigated complaints that, since 1995, the Department for Work and Pensions (DWP) has failed to provide accurate, adequate and timely information about areas of state pension reform.
The 1995 Pensions Act and subsequent legislation raised the state pension age for women born on or after April 6, 1950.
What has the ombudsman asked for?
It has asked Parliament to identify a mechanism for providing appropriate remedy for those who have suffered injustice.
The report said: “We think this will provide the quickest route to remedy for those who have suffered injustice because of DWP’s maladministration.”
The ombudsman has also said that, in addition to paying compensation, the DWP should acknowledge its failings and apologise.
Why does it want Parliament to step in?
The ombudsman’s report said: “Complainants have also told us they doubt DWP’s ability or intent to provide a remedy.
“Given the scale of the impact of DWP’s maladministration, and the urgent need for a remedy, we are taking the rare but necessary step of asking Parliament to intervene.”
What level of compensation has been suggested?
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The ombudsman’s report estimates that the reimbursements for the approximately 2.6 million women who were impacted by the rise in the pension age should fall within the range of £1,000 to £2,950.
The Government might be faced with a payment of up to £7.7bn if everyone received the higher end of that.
It has given this suggestion to Parliament and it will be up to Parliament to determine a remedy.
Who could be entitled to state pension compensation?
The Waspi group (Women Against State Pension Inequality) has been campaigning for those born between April 6, 1950, and April 5, 1960. If you were born within these dates, then you might be entitled for compensation but no decision has been made just yet.
What has the reaction been?
There have been some calls for compensation to be set at a higher level.
Several MPs and activists argue that the amount ought to be closer to £10,000 for each woman.
MP Alan Brown spoke about the issue to Parliament in February, stating that a Level 6 band with payouts of £10,000 or more would be "most appropriate" in terms of compensation, but that a minimum Level 5 banding of the Parliamentary and Health Service Ombudsman remedy scales should be adopted.
He said: “For nine years, this matter has been debated, hearing harrowing stories with many MPs across the chamber pledging they would do all they could to help these women, but the Government has ignored the plight of these women.
“Unfortunately, 40,000 of these women are dying each year without receiving any compensation and tragically 240,000 have now passed away.”
Waspi chairwoman Angela Madden has said all political parties owe it to the women affected “to make a clear and unambiguous commitment to compensation”.
What will happen now?
The second reading has been rescheduled to May 17.
Gavin Newlands MP, vice-chair of the All Party Parliamentary Group on WASPI thinks there should be a vote in the Commons on compensation “as soon as possible”.
He said: “The Ombudsman was clear – compensation should be paid to the WASPI women who suffered due to the DWP’s maladminstration.”