Waspi women threaten legal action over pensions row

A campaign group called "Women Against State Pension Inequality" (Waspi) is threatening the government with legal action unless it reconsiders its decision to refuse compensation to millions of women affected by the increase in the state pension age. The group represents 3.6 million women born in the 1950s who claim they were not adequately informed about pension reforms first introduced in the 1990s. This lack of communication has caused significant disruption to their retirement plans.

The government has apologized for failing to communicate these changes in a timely manner but told the BBC that it "cannot justify compensating everyone with a scheme costing up to £10.5 billion at taxpayers' expense." Waspi chairwoman Angela Madden said: "We believe this is not only an outrage but is also legally wrong." The group firmly believes that they have a strong legal case.

The "pre-action letter" sent to the government is a formal mechanism designed to give the government an opportunity to respond before the campaigners seek a judicial review in the High Court in two weeks. Last year, the parliamentary ombudsman recommended that compensation of up to £2,950 per person should be paid due to the delay of 28 months in providing written notification to affected women about the changes. This recommendation has yet to be implemented.

Waspi campaigners claim that women have suffered financial hardship and have had to reconsider their retirement plans. However, Labour and Pensions Secretary Liz Kendall apologized in December for the delayed communication but said there was "considerable awareness" of the changes to the pension age. She said that sending letters earlier would not have affected their ability to make retirement choices. Her claim that there was no direct financial loss may now be scrutinized in court if the campaigners are granted permission for a judicial review.

Ms. Madden said: "The government has accepted that women born in the 1950s were victims of maladministration but are now saying that none of us suffered any injustice." In the absence of compensation, she said: "The alternative is to continue to defend an untenable position, but this time in front of a judge." The Waspi group has also launched a crowdfunding campaign to try to cover the estimated £75,000 in legal costs. They are determined to fight for what they believe is fair.

If these women win their lawsuit, it is estimated that it could cost the government up to £10.5 billion. Government finances are already under pressure due to weak economic growth and rising borrowing costs, with Sir Keir Starmer stating that "taxpayers simply cannot afford the burden of compensation." The financial implications of this case are substantial.

The changes were initially decided in 1995 by the then-Conservative government and aimed to equalize the state pension age for men and women, with the goal that everyone would have to wait until their 65th birthday by 2020. However, in 2010, following the global financial crisis, the Conservative-Liberal Democrat coalition decided to accelerate these changes to reduce the overall cost of state pensions. This acceleration has been a major point of contention.

Other countries have made similar decisions in recent years, but the UK government failed to communicate its changes quickly enough, and the potential impact of this may now be scrutinized in court. A government spokesman told the BBC on Sunday that it accepted the ombudsman's findings of maladministration and apologized for the 28-month delay in providing written notification to women born in the 1950s. Despite the apology, the government remains resistant to providing compensation.

"However, the evidence shows that only a quarter of people remember reading and receiving letters they did not expect, and that by 2006, 90% of women born in the 1950s knew that the state pension age was changing. Earlier letters would not have affected this." This is the government's argument against the need for compensation, suggesting awareness was already widespread.