State pension compensation for Waspi women could be MEANS-TESTED, expert warns
Experts are warning that state pension compensation could be means-tested for women born in the 1950s
GETTY/PA
State pension compensation for women born in the 1950s could be means-tested similar to the Winter Fuel Payment, a leading pension consultant has claimed.
Analysts are warning the Women Against State Pension Inequality (Waspi) campaign that it is "plain deluded" to think this is not an option being considered by the Chancellor.
Last month, Rachel Reeves confirmed the Winter Fuel Payment would be reserved for pensioners on low income with claimants needing to be on Pension Credit.
Pensions consultant John Ralfe has warned on social media that women born in the 1950s should be alert to how the new Labour Government.
He shared: "Labour, Keir Starmer and Rachel Reeves have chosen to strictly means-test Winter Fuel Allowance.
"Anyone who thinks they won't also strictly means-test any Waspi compensation paid for 'maladministration' is plain deluded."
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Campaigners are urging the Labour Party to do right by Waspi women GETTY/PA In 2022, the Department for Work and Pensions (DWP) was found guilty of "maladministration" in its handling of the state pension age equalisation between the sexes.
Some 3.8 million women are believed to have been impacted by this with many being unable to sufficiently prepare their savings for retirement.
A follow-up report by the Parliament and Health Service Ombudsman (PHSO) determined Waspi women could be entitled to a Level 4 compensation payout which is between £1,000 and £2,950.
However, no compensation package has been brought before Parliament to be voted on with many pensioners being left in the lurch.
Reeves has opted to means-test the Winter Fuel Payment as part of her effort to fill the £22billion "black hole" in the public finances she claims was left by the last Government.
Labour ministers are urging those on low income to apply for Pension Credit in order to still claim up to £300 in energy bill support.
Due to the expense on the public purse. Ralfe believes a more targeted approach to Waspi compensation is needed despite the PHSO recommending a universal approach.
"Given all the other pressures on the public purse, £3.5billion to £10.5billion is just a non-starter," he added.
"How can the Government – weeks after a tight Budget – justify spending this, especially when most of the 3.5 million proposed recipients knew full-well their state pension age was increasing?
"Doing so would just be handing them all an unfair windfall."
LATEST DEVELOPMENTS:
Campaigners are calling on policymakers to do more for women born in the 1950s WASPI Angela Madden, chair of the Waspi campaign, told GB News: "An injustice is an injustice, no matter your personal financial position and the Parliamentary Ombudsman’s report clearly stated that all women impacted by failings by the Department for Work and Pensions are entitled to compensation.
"Recommendations from the Work and Pensions Select Committee give clear support for a 'two-pronged' approach, with a flat rate of compensation for all those affected, and an option for those experiencing direct financial loss to submit an application for an additional payment.
"No other compensation scheme has ever been based on the financial circumstances of victims and it would be a further injustice to expect WASPI women to accept this outcome. This isn’t about personal finances, this is about the government putting right a historic wrong and treating WASPI women with the respect they deserve.”
A DWP spokesperson said: “This was a serious report, requiring serious consideration. We will continue to listen respectfully to the women involved, and ensure we take on board any lessons learnt.”