Campaigners have branded a UK Government decision not to compensate women affected by the way changes to the state pension age were communicated “absolutely disgusting”.
The Government is also facing a barrage of criticism from MPs over the decision, some of which is coming from within its own party.
One former pensions minister said the handling of the issue “sets an extremely worrying precedent”.
Work and pensions secretary Liz Kendall said the Government does not believe paying a flat rate to women at a cost of up to £10.5bn would be a fair or proportionate use of taxpayers’ money.
Linda Carmichael, one of the WASPI (Women Against State Pension Inequality) women, said: “We’ve been campaigning for over eight years, and we really thought our campaign was getting somewhere.
“This announcement from Liz Kendall is really a cruel blow to all of the work that we’ve put in over the years.
“You don’t go into a campaign looking what the end result will be exactly but you do hope that you’ll be treated fairly and injustices will be righted, which we have been promised by politicians over the years. And unfortunately, this hasn’t happened.”
Angela Madden, chairwoman of WASPI said the Government had made an “unprecedented” political choice to ignore the recommendations of an independent watchdog.
“This is a bizarre and totally unjustified move which will leave everyone asking what the point of an ombudsman is if ministers can simply ignore their decisions,” she said.
“It feels like a decision that would make the likes of Boris Johnson and Donald Trump blush.”
She described an action plan to avoid such mistakes in future as “an insult both to the women” and to the investigation previously carried out by the Parliamentary and Health Service Ombudsman (PSHO) into how changes to the state pension age were communicated.
Ms Madden said: “An overwhelming majority of MPs back WASPIs calls for fair compensation and all options remain on the table. Parliament must now seek an alternative mechanism to force this issue on to the order paper so justice can be done.”
The Government said it has accepted the Ombudsman’s finding of maladministration and has apologised for there being a 28-month delay in writing to 1950s-born women.
But it said evidence showed only one in four people remember receiving and reading letters that they were not expecting and that the great majority of 1950s-born women did know that the state pension age was changing.
The Government said a blanket compensation scheme, which could cost taxpayers up to £10.5bn, cannot be justified.
It would also be impossible to deliver a tailored compensation scheme taking into account individual circumstances that is fair, value for money and feasible, it added.
In a statement, Kendall said: “These two facts: that most women knew the state pension age was increasing and that letters aren’t as significant as the Ombudsman says, as well as other reasons, have informed our conclusion that there should be no scheme of financial compensation to 1950s-born women, in response to the Ombudsman’s report.”
She added: “The alternative put forward in the report is for a flat rate compensation scheme, at level four of the Ombudsman’s scale of injustice, this would provide £1,000 to £2,950 per person at a total cost of between £3.5bn and 10.5bn.
“Given the vast majority of women knew the state pension age was increasing, the Government does not believe paying a flat rate to all women at a cost of up to £10.5 billion would be a fair or proportionate use of taxpayers’ money.”
There were shouts of “shame” when Kendall made the announcement in the Commons.
Labour MP Brian Leishman said he was “appalled” at the decision to not provide financial compensation to the Waspi women.
The MP for Alloa and Grangemouth told the Commons: “Firstly I’d like to say I’m appalled at this announcement and I have campaigned with Waspi women, as have many parliamentary colleagues, and this is an incredible let down.
“WASPI women, in my opinion, certainly do not need words of disappointment and they certainly do not need hollow statements. What they need is justice. Does the Secretary of State not agree with that?”
Kendall said: “I believe that this is a difficult decision but the right and fair one.”
She offered to meet Leishman to discuss the matter further.
Kendall has previously been seen with campaigners at a Parliamentary event holding up a sign saying: “I will work with Waspi to identify and deliver a fair solution for all women affected.”
Caroline Abrahams, charity director at Age UK, said: “Everyone understands that the public finances are under acute pressure, but the Government should not rub salt in the wounds of those impacted by suggesting there is no case for compensation.
“The fact that many of the women affected will also be coping with the loss of their winter fuel payment this year will intensify their sense of injustice.”
Unison head of equality Josie Irwin said the decision “is a cruel blow to a generation of women”, adding: “The Government must find a way to resolve this desperately unfair situation. Refusing to pay compensation is not the answer.”
Earlier, Sir Keir Starmer said he understood the concerns of the WASPI women but the Government had to protect the taxpayer.
The Prime Minister told broadcasters: “I do understand, of course, the concern of the Waspi women.
“But also I have to take into account whether it’s right at the moment to impose a further burden on the taxpayer, which is what it would be.”
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