Another Labour U-turn! Rachel Reeves defends blocking £10.5bn compo for Waspi women saying it is ‘not the best use of taxpayers cash’ – after backing campaigners demanding cash_Nhy
Rachel Reeves today defended the decision to block massive a massive handout for millions of women who say they were blindsided by state pension age changes – having previously backed the campaign.
The Chancellor said ministers were right to block the £10.5bn compensation package for Waspis – women born in the 1950s who missed out when the state pension age was raised from 60 to 65 for both sexes.
In a media interview today she said the massive payout was not ‘the best use of taxpayers’ money’ and suggested only a small number of women has been unaware of the change.
However she proudly posed for photographs in 2020 alongside Waspi campaigners, who also received backing at the time from Sir Keir Starmer and Liz Kendall, the Work and Pensions Secretary who announced the money would not be paid out yesterday.
Ms 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 per cent 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.’
It came as the decision to block redress was condemned by the watchdog who recommended it.
The Chancellor said ministers were right to block the £10.5bn compensation package for Waspis – women born in the 1950s who missed out when the state pension age was raised from 60 to 65.
However she proudly posed for photographs in 2020 alongside Waspi campaigners, who also received backing at the time from Sir Keir Starmer (above) and Liz Kendall (below), the Work and Pensions Secretary who announced the money would not be paid out yesterday.
An estimated 3.8million born between April 6, 1950, and April 5, 1960, were affected by a change to the state pension age from 60 to 65 between 2010 and 2020.
They say they suffered financially and were left worse off in retirement because they were not given enough notice about it happening.
The Parliamentary and Health Service Ombudsman (PHSO) watchdog said the women should be paid up to £2,950 each, a package with a potential total cost of £10.5 billion to the public purse, as poor communication meant they had lost out on the change to plan their retirement finances.
On Tuesday, Ms Kendall rejected this recommendation.
The PM insisted last night he could not add to the ‘burden’ on taxpayers despite the government apologising for delays in sending out letters telling them about the change.
Rebecca Hilsenrath, the ombudsman, told Times Radio: ‘It’s great that the Government are saying that our intervention will lead to service improvements and it’s fair to say also that people who come to us, overwhelmingly, are motivated by wanting things to improve for other people.
‘But what we don’t expect is for an acknowledgement to be made by a public body that it’s got it wrong but then refuse to make it right for those affected.’
Senior Labour figures, including Ms Reeves, Sir Keir, Angela Rayner and Ms Kendall, all backed the women’s campaign in opposition.
In 2022, Sir Keir signed a pledge calling for the women affected to receive ‘fair and fast’ compensation. Last year, he said they had faced a huge injustice’. But on Monday, the Prime Minister said the Government could not afford the estimated £10.5billion cost – which would have seen a payout of up to £3,000 to each of the more than 3million affected.
The decision triggered a wave of anger with Angela Madden, chairman of the Women Against State Pension Inequality (Waspi) group, describing it as an ‘insult’.
In the Commons, Ms Kendall faced a backlash from Labour MPs and cries of ‘shame’.
Labour MP Brian Leishman said he was ‘appalled’ by the decision, telling Ms Kendall: ‘Waspi women certainly do not need words of disappointment and they certainly do not need hollow statements. What they need is justice.’
