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Secretary of State for Work and Pensions issued a new statement on Thursday following the publication of the Parliamentary and Health Service Ombudsman’s (PHSO) final report into the way the Department for Work and Pensions (DWP) communicated changes to the State Pension age for thousands of
Women born in the 1950s. The PHSO report concluded that those affected by State Pension age changes which were not communicated adequately should receive an apology and compensation payouts and it has now asked Parliament to intervene and “act swiftly” to make sure a compensation scheme is put in place. The Ombudsman also said the DWP has not acknowledged its failings nor put things right for those affected. In a written statement , Mel Stride MP confirmed that the DWP “will consider the Ombudsman’s report and respond in due course, having cooperated fully throughout this investigation”. He added that “Ministers intend to come before the House in due course.” Read More Related Articles DWP urged to 'swiftly' help all the women it failed after changes to their State Pension age Read More Related Articles WASPI women call for £10,000 payout from DWP after State Pension age change investigation findings The Ombudsman’s report has suggested compensation at level four, ranging between £1,000 and £2,950, could be appropriate for each of those affected. However, this is a lower range than the £10,000 figure - level six of the PHSO remedy scale - previously suggested by the State Pension Inequality For Women All-Party Parliamentary Group (APPG) and the Women Against State Pension Inequality (Waspi) campaign. The report, which found thousands of women may have been affected by the failure in communication, stated: “We recognise the very significant cost to taxpayers of compensating all women affected by DWP’s maladministration. “Compensating all women born in the 1950s at the level four range would involve spending between around £3.5 billion and £10.5 billion of public funds, though we understand not all of them will have suffered injustice.” Top Money Stories Today WASPI calls for £10,000 DWP payout Pensioners can claim £600 heating help New £12,486 State Pension arrears update PIP back payments of up to £12,000 Secretary of State for Work and Pensions statement Mel Stride said: “The Parliamentary and Health Service Ombudsman has today published his final report on his investigation into State Pension age changes communication. The timing and date of publication was entirely of the Ombudsman’s choosing, which the Government plays no part in. “We will consider the Ombudsman’s report and respond in due course, having cooperated fully throughout this investigation. Ministers intend to come before the House in due course. “The government has always been committed to supporting all pensioners in a sustainable way that gives them a dignified retirement whilst also being fair to them and taxpayers. “The State Pension is the foundation of income in retirement and will remain so as we deliver a further 8.5% rise in April to 12 million pensioners on the Basic and New State Pensions. This sees the full rate of the New State Pension rise by £900 a year.” Latest WASPI News WASPI call for £10,000 DWP payout DWP urged to 'swiftly' help WASPI women New calls for 'urgent' compensation plan Compensation would be for all women Commenting on the report findings, Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: “In the latest twist of the long running WASPI dispute, the Ombudsman has recommended the DWP compensate women affected by its failure to effectively communicate changes to State Pension age. In a strongly worded report, the Ombudsman has called on the DWP to ‘do the right thing’ and said it must be held to account for its failure. “However, it’s important to say DWP is not legally obliged to carry out these recommendations and the Ombudsman expects it to be highly resistant to doing so. This is why it is taking the extraordinary action of asking Parliament to intervene and identify a way to provide compensation. It’s likely we will see this saga continue to rumble on. “Its recommendations could see women compensated up to £2,950 which is a decent amount but far lower than some of the sums reported. With this in mind it is likely that many affected women will continue to feel short changed.” Get the latest Record Money news Join the conversation on our Money Saving
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WhatsApp community . Becky O’Connor, Director of Public Affairs at PensionBee, said: “It’s reassuring to see the Parliamentary and Health Service Ombudsman acknowledge the necessity of compensation for the WASPI cohort. “The push for the establishment of a compensation scheme, overseen by Parliament, marks a critical step forward in aiding those who suffered financial losses and a loss of ability to make informed financial decisions, due to insufficient communication from the Department for Work and Pensions regarding State Pension age adjustments. “The Department for Work and Pensions holds a substantial responsibility to guarantee transparent communication regarding pension changes. It’s imperative that it is held accountable for any shortcomings in fulfilling this obligation, as these can significantly impact an individual’s retirement outcomes.” Join our Daily Record Money WhatsApp community here to receive alerts on the latest money news from benefits to shopping deals. Story Saved You can find this story in My Bookmarks. Or by navigating to the user icon in the top right. Follow Daily Record Facebook
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