A comprehensive investigation by the Parliamentary and Health Service Ombudsman has found that thousands of women may have been affected by DWP’s failure to adequately inform them that the State Pension age had changed.
The 1995 Pensions Act and subsequent legislation raised the State Pension age for women born on or after 6 April 1950. We investigated complaints that, since 1995, DWP has failed to provide accurate, adequate and timely information about areas of State Pension reform.
We published stage one of our investigation in July 2021. Our investigation found failings in the way DWP communicated changes to women’s State Pension age.
This final report combines stages two and three of our investigation. It both considers the injustice resulting from the maladministration we identified during stage one and also sets out our thinking about remedy.
To date, DWP has not acknowledged its failings nor put things right for those women affected. DWP has also failed to offer any apology or explanation for its failings and has indicated it will not compensate women affected by its failure.
DWP’s handling of the changes meant some women lost opportunities to make informed decisions about their finances. It diminished their sense of personal autonomy and financial control.
PHSO Chief Executive Rebecca Hilsenrath, said:
“The UK’s national Ombudsman has made a finding of failings by DWP in this case and has ruled that the women affected are owed compensation. DWP has clearly indicated that it will refuse to comply. This is unacceptable. The Department must do the right thing and it must be held to account for failure to do so.
“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.”
The investigation has been complex and involved analysing thousands of pages of evidence. On a number of occasions, parties were allowed additional time to consider and comment on our views. We also agreed last year to look again at part of our stage two findings following a legal challenge. All of this resulted to delays in the final report.
The report has been laid before Parliament, with a request that it looks at our findings and intervenes to agree a remedy for the women affected. While Parliament will make its own decisions about rectifying the injustice, we have shared what we consider to be an appropriate remedy. In addition to paying compensation, we have made it clear that DWP should acknowledge its failings and apologise for the impact it has had on complainants and others similarly affected.
The Ombudsman has received a series of complaints relating to how well DWP has communicated a variety of State Pension reforms. Concerns about communication of changes to the State Pension age constitute only one such area of complaint. The Department has also declined to act on other issues that have been consistently highlighted in complaints. A report from the Ombudsman later in the year will set these out.