A group of women, known as Women Against State Pension Inequality (Waspi), is threatening the UK government with legal action over its refusal to compensate millions of women affected by changes to the state pension age. The Waspi group claims that 3.6 million women born in the 1950s were not adequately informed about these changes, which were first introduced in the 1990s.
The government has acknowledged that it did not communicate the changes quickly enough, but it argues that it cannot justify a £10.5 billion compensation scheme at taxpayers’ expense. Waspi chair Angela Madden disagrees, stating that the government’s stance is both outrageous and legally wrong.
Waspi has sent a formal “letter before action” to the government, giving it two weeks to respond before the group seeks a judicial review at the High Court. Last year, the parliamentary ombudsman recommended payouts of up to £2,950 per woman due to a 28-month delay in notifying them about the changes.
The Waspi campaigners argue that many women suffered financial hardship and had to adjust their retirement plans because of the lack of timely information. However, Work and Pensions Secretary Liz Kendall has maintained that there was “considerable awareness” of the changes and that earlier notification would not have significantly impacted retirement choices.
The Waspi group has launched a crowdfunding campaign to cover estimated legal fees of £75,000. If they win their case, it could cost the government billions. With the UK’s economic challenges, including weak growth and higher borrowing costs, opposition leader Sir Keir Starmer has expressed concerns about the affordability of such compensation.
The pension age changes were initially made in 1995 to equalize the age at which men and women receive their state pensions. However, following the 2010 financial crisis, the government accelerated these changes to reduce costs. Other countries have made similar adjustments, but the UK’s communication delays may now be scrutinized in court.
A government spokesperson acknowledged the ombudsman’s findings of maladministration and apologized for the delay. However, they argued that earlier notification would not have significantly altered the outcome, as many women were already aware of the changes by 2006.
The Waspi group remains determined to pursue legal action, emphasizing that the government’s stance is indefensible and should be challenged in court.
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