The Parliamentary and Health Service Ombudsman has ruled women affected by state pension age changes are owed compensation by the government.
This was part of an investigation looking into complaints which argued that since 1995 the DWP failed to provide accurate, adequate and timely information about areas of state pension reform.
The ombudsman has been investigating the matter for years, and in a first report in July 2021, it found there was evidence of maladministration at the DWP in its handling of the changes.
The PHSO said the DWP’s handling of the pension changes meant some women lost opportunities to make informed decisions about their finances and also diminished their sense of personal autonomy and financial control.
It ruled the DWP failed to adequately communicate changes to women’s state pension age and therefore those affected are owed compensation.
The ombudsman has presented its report to parliament asking it to intervene and provide an “appropriate remedy”.
According to PHSO chief executive, Rebecca Hilsenrath, the DWP has “clearly indicated” it will refuse to comply which she called “unacceptable”.
“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," she added.
Investigation findings
The investigation found research reported in 2004 showed information about state pension age changes was not reaching the people who needed it most. The researchers recommended information should be ‘appropriately targeted’.
However, according to the PHSO’s report the DWP failed to take this feedback into account properly when deciding in August 2005 what to do next. It had identified it could do more but did not.
Reportedly, a survey in 2006 showed too many women still thought their state pension age was 60.
In November 2006, the DWP proposed writing directly to women to let them know about their state pension age but the PHSO has said it failed to do anything about the proposal until December 2007.
The PHSO also found failings in how the DWP communicated information about national insurance qualifying years.
In the report it said because of the 2014 Pensions Act and the introduction of the new state pension, there were changes to the number of national insurance qualifying years needed to claim the full rate of state pension with timely and accurate information available about this.
However, research showed too many people did not understand their own situations and how the new state pension affected them personally.
The Work and Pensions committee and the National Audit Office, as well as research that the DWP commissioned, highlighted this gap between awareness and understanding.
