Chancellor Rachel Reeves has defended the decision to refuse compensation for the Waspi women, saying 90 per cent were aware of the impending changes to the state pension age.
Calls for women born in the 1950s to receive thousands in compensation – after the state pension age was increased from 60 to 65 – have been rejected by work and pensions secretary Liz Kendall.
Ms Reeves, who supported the Waspi campaign in opposition, said she understands why women are “disappointed” but that it would not be a good use of taxpayers’ money to pay an “expensive compensation bill for something that most people knew were happening”.
Around 90 per cent of women knew the changes were coming, Ms Reeves added.
The rise in state pension age sparked controversy after millions claimed they were forced to change retirement plans after not being properly informed.
Labour’s refusal of compensation comes despite the Parliamentary and Health Service Ombudsman (PHSO) ruling that affected women were due compensation of typically £1,000 to £2,950 each. The Lib Dems described the rejection as a “day of shame”.
It comes as Sir Keir Starmer prepares to face MPs at midday for the final Prime Minister’s Questions of the calendar year, before parliament recess begins on Thursday.
Liz Kendall issues apology as Labour face backlash over Waspi women ‘betrayal’
Alex Croft18 December 2024 09:55
Reform UK supports Labour’s Waspi decision
Richard Tice, deputy leader of Reform UK, has supported the government’s decision not to compensate the Waspi women.
Speaking to Sky’s Kay Burley, Mr Tice said: “Waspi women have been fighting a significant campaign. But the reality is we haven’t got £10bn just to fling around.
“And the reality is, [Reform UK’s] economic policy of lifting the starting point of paying any income tax to £20,000 – that’s an extra £1,500 for anybody working and those receiving pensions.
“That helps the Waspi women, along with everybody else.”
Alex Croft18 December 2024 09:39
Waspi women ‘betrayed’ but we may not have paid either – shadow minister
Shadow business secretary Andrew Griffith has criticised the “betrayal” of the Waspi women by Labour – but acknowledged the Tories may not have offered compensation either.
Mr Griffith told Sky News that every Waspi campaigner believed that this government “would do something”.
He said: “They’d all talked about it: Keir Starmer had talked about it, Angela Rayner talked about it, even Liz Kendall, who yesterday said they weren’t going to do a single thing about it, had talked about it. So it’s a big issue of betrayal.”
The Tories may not have offered compensation, but this is beside the point, he added.
“I’m not sitting here saying we would necessarily have done something about it. That’s fair.
“But the point is this Government has given everybody the impression that they would, and then they’ve come in, and now they’re saying they wouldn’t. That’s a big issue. I can understand people, particularly the Waspi women, feeling enormously let down by that.”
Alex Croft18 December 2024 09:25
Front pages: Government slammed for ‘betrayal’
Daily Mirror: We have been betrayed
Daily Mail: Betrayal that proves Labour cynically said ANYTHING to get elected
The Times: Labour MPs rebel over new blow to pensioners
Daily Express: Labour have betrayed our OAPs time after time!
Morning Star: Kendall refuses Waspi cash deal
Alex Croft18 December 2024 09:10
Reeves: ‘Expensive compensation bill’ not worth taxpayer money
Chancellor Rachel Reeves, who previously backed the Waspi campaign, has said an “expensive compensation bill” was not a good use of taxpayer funds.
Mr Reeves said: “I understand that women affected by the changes to the state pension age feel disappointed by this decision, but we looked in full at the ombudsman recommendations and they said that around 90% of women did know that these changes were coming.
“And as Chancellor, I have to account for every penny of taxpayers’ money spent.
“And given that the vast majority of people did know about these changes, I didn’t judge that it would be the best use of taxpayers’ money to pay an expensive compensation bill for something that most people knew was happening.”
Alex Croft18 December 2024 08:57
Six years ago: Labour MPs give standing ovation to Waspi protest in Commons
Around six years ago, Labour MPs gave a standing ovation to Waspi women who staged a protest from the House of Commons public gallery.
The protest took place soon after former chancellor Philip Hammond had concluded his 2018 Budget statement. Many Labour MPs – then under the leadership of Jeremy Corbyn – stood up to applaud.
Sir Keir Starmer, near the Speaker and next to Emily Thornberry, appears to stand up alongside fellow MPs – but it is unclear if he is applauding.
Alex Croft18 December 2024 08:43
Improving public services better use of funds than Waspi compensation – minister
Improving public services for pensioners is a better use of taxpayers money than compensating the Waspi women, government minister Rushanara Ali said this morning.
She told BBC Radio 4’s Today: “The fact is that we have got a huge, huge job to do in terms of making sure that the conditions that pensioners live in in our country are improved and that’s why our focus is on protecting the triple lock, which will unlock £30 billion in this Parliament, supporting pensioners… and that includes those who are women born in the 1950s.
“We are absolutely committed to tackling the public service crisis in the NHS, making sure we’ve got more policing in our streets, which is about security and safety for pensioners and support for the NHS, they need those services.
“So this Government has inherited a devastating set of issues, we are responding to those challenges.”
Alex Croft18 December 2024 08:30
Compensation would not be ‘fair or proportionate’ – minister
Government minister Rushanara Ali is defending the decision not to award compensation to the Waspi women in the morning media round.
Speaking with Sky News, she described the fallout over the Waspi women compensation as “deeply regrettable”, but that compensation would not be a “fair or proportionate” use of taxpayer money.
“The situation is that in terms of the compensation, it would be up to some £10 billion, which we don’t feel is fair or proportionate in terms of use of public money, given that some 90% of those affected, according to the ombudsman’ report, it would not have been made a difference in terms of the delay in the letters,” the homelessness ministersaid.
“But the reality is, this has been a very difficult issue for those affected, and it’s deeply regrettable, and lessons will need to be learned.”
Alex Croft18 December 2024 08:17
Labour accused of betraying WASPI women to win election after compensation snub
The prime minister came under fire on Wednesday after work and pensions secretary Liz Kendall rejected calls for 3.8m affected individuals to be given £1,000 and £2,950 each in compensation.
Homelessness minister Rushanara Ali was sent out to defend the government’s decision, but faced a heated Sky News interview in which presenter Kay Burley said Labour had “made a promise time and time again” to affected women before the general election.
“And now you’ve literally said, ‘nah, sorry, it’s not happening’,” Ms Burley said.
Ms Ali repeated Ms Kendall’s apology on behalf of the government to women affected by the change, which hiked the state pension age from 60 to 65, with millions claiming they were not properly aware.
She said: “Lessons need to be learned for the future and I absolutely understand this is really, really difficult.
“We will need to make sure these things do not happen again.”
Read the full report from political correspondent Archie Mitchell:
Alex Croft18 December 2024 08:06
‘Day of shame’: Labour will not pay compensation to 3.8 million Waspi women, Liz Kendall announces
Work and pensions secretary Liz Kendall rejected calls for individuals affected to be awarded between £1,000 and £2,950 each, while claiming she understood their unhappiness.
“I know there are women born in the 1950s who want and deserve a better life, they have worked hard in paid jobs and in bringing up their families,” she said.
She pledged the government would protect the pensions “triple lock”, drive down NHS waiting lists and deliver “the jobs, homes and opportunities your families need to build a better life”.
Whitehall editor Kate Devlin reports:
Kate Devlin, Whitehall Editor18 December 2024 07:50