- PHSO finds women due compensation for pension age changes
- Inquiry highlights government’s failure to inform on pension adjustments
- Parliament urged to create compensation scheme for affected women
The Parliamentary and Health Service Ombudsman (PHSO) has stated that the Department for Work and Pensions (DWP) failed to adequately communicate changes to the state pension age for women; therefore, women impacted are entitled to compensation.
It has been determined that women born in the 1950s are entitled to compensation, according to a long-awaited report on the effects of retirement age increases.
According to an inquiry by the Parliamentary and Health Service Ombudsman (PHSO), the government’s failure to sufficiently apprise women of the change potentially impacted thousands.
The watchdog stated that the Department for Work and Pensions (DWP) has yet to acknowledge its shortcomings or make amends to the affected women.
Parliament is urged to intervene, as the department has indicated it will not comply with the findings, according to the ombudsperson.
Rebecca Hilsenrath, chief executive officer of the PHSO, stated: “The national Ombudsman of the United Kingdom has ruled that the DWP failed in this instance and that compensation is owed to the afflicted women.
“DWP has unequivocally declared its intention to decline compliance.” This cannot be tolerated. “The Department must be held accountable for its actions and must do the right thing.”
In light of the ombudsman’s “significant concerns” that the DWP will not act on its findings, Ms. Hilsenrath stated, “We have proactively requested that Parliament intervene and hold the Department accountable.”
“Parliament must act immediately to establish a compensation plan.” This will afford women the most expeditious pathway to resolution.
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The PHSO was investigating potential inequities that might arise due to the decision to equalize the retirement age for men and women.
According to Women Against State Pension Inequality (Waspi), millions were harmed monetarily due to inadequate notice to prepare for the change.
It was lauded that the state pension age was lowered to match that of males, as this action promoted gender equality.
After decades of practice, women retired at 60 and males at 65.
In 1995, legislation established a schedule for the eventual increase of the retirement age for women to correspond with that of males.
The initial strategy entailed implementing the change gradually over ten years, from 2010 to 2020, to allow individuals ample time to make necessary preparations.
Nevertheless, the coalition government expedited the transition in 2011 to curtail expenditures by delaying the retirement age increase until 2018.
Waspi supports age equality; however, they contend that they needed to be adequately apprised of the modifications, which prevented them from adequately preparing or arranging other financial matters.
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