The government has agreed to reconsider its decision not to compensate millions of women affected by state pension age rises, after new evidence emerged during ongoing legal proceedings.
Work and Pensions Secretary Pat McFadden told MPs that ministers will withdraw from a forthcoming judicial review brought by the Women Against State Pension Inequality (Waspi) campaign, while the newly uncovered material is examined.
The decision marks a significant shift in the long-running dispute over how women born in the 1950s were informed of changes to the state pension age. Campaigners argue they were not given sufficient notice of the increases that brought their retirement age in line with men, leaving many financially unprepared.
McFadden said the new evidence relates to previously unseen Department for Work and Pensions (DWP) documents from 2007, which had not been made available to his predecessor Liz Kendall when she ruled out compensation last December.
“As part of the legal proceedings challenging the government’s decision, evidence has been cited about research findings from a 2007 report,” McFadden told the Commons. “In light of this, and in the interest of fairness and transparency, I have concluded that the government should now consider this evidence. This means we will retake the decision made last December.”
He added that had Kendall been provided with the report, she would have “considered it alongside all other relevant evidence and material.”
In March 2024, the Parliamentary and Health Service Ombudsman recommended that affected women should receive compensation of up to £2,950 each, which could have cost the Treasury around £10.5 billion. Kendall rejected that advice at the time, saying most people had been aware of the state pension changes.
McFadden, who was appointed Work and Pensions Secretary earlier this year, stressed that the new review “should not be taken as an indication” that compensation will necessarily be awarded. However, he said the government wanted to ensure that all relevant evidence was considered before any final decision is made.
Waspi campaigners, who have spent nearly a decade fighting for redress, welcomed the announcement but urged ministers to act swiftly.
Angela Madden, chair of the Waspi campaign, said: “For 10 years we have been fighting for compensation. The Government has fought us tooth and nail every step of the way. The only correct thing to do is to immediately compensate the 3.6 million Waspi women who have already waited too long for justice.”
The issue stems from the 1995 Pensions Act, which set out plans to raise the state pension age for women from 60 to 65, and later from the 2011 coalition government legislation that pushed the age to 66 for both men and women. Campaigners say communication failures by the DWP meant many women were unaware of the changes until they were close to retirement.
It is estimated that around 300,000 women affected by the policy have died since compensation was first demanded in 2015.
While McFadden has hinted at the possibility of modest welfare reforms to help balance the public finances, his decision to revisit the Waspi ruling signals a more conciliatory approach from the new Labour government — one that may seek to rebuild trust after years of contention.
