Ministers reject Waspi calls for compensation after rethink
Campaigners for 3.6 million women born in the 1950s have reacted with fury after the government confirmed on Thursday 29 January 2026 that it will not pay any compensation for changes to the state pension age.
Despite a fresh review over the last few months, Work and Pensions Secretary Pat McFadden told the House of Commons that the government has reached the same conclusion as it did last year: that a payout would be "neither fair nor feasible."
Why the Government Said No
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Cost: A flat-rate compensation scheme would cost taxpayers up to £10.3 billion. Ministers argued this would not be good value for money.
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Awareness: The government claims that the "vast majority" of women were already aware of the changes through media campaigns, leaflets, and TV adverts.
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Effectiveness of Letters: McFadden argued that even if letters had been sent sooner, research suggests most people would not have read or acted on an "unsolicited" pension letter at the time.
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No "Direct Loss": While the government apologised for a 28-month delay in sending letters, it agreed with a previous watchdog finding that the delay did not cause any "direct financial loss."
Reaction from Campaigners
The Women Against State Pension Inequality (Waspi) group described the decision as showing "utter contempt" for those affected. They argue that many women had their retirement plans ruined because they were not told their pension age was rising from 60 to 66 until it was too late to make new plans.
Angela Madden, the chair of Waspi, called the move a "disgraceful political choice" and confirmed that the group is now taking legal advice to see if they can challenge the decision in court.
Political Fallout
The decision has caused a major row in Parliament:
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Labour Backbenchers: Several of the government's own MPs have criticised the move, calling it a "bitter pill to swallow" after many had supported the women while in opposition.
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Opposition Parties: The SNP and Liberal Democrats accused the government of a "historic betrayal," claiming that ministers gave women "false hope" by promising to review the case last autumn.
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May Elections: With local and Holyrood elections coming up in May 2026, rivals are already using the decision to suggest the government has turned its back on pensioners.
