State pension row escalates as Labour told ‘right this wrong’ amid compensation legal battle

The Women Against State Pension Inequality group gathered outside the Royal Courts of Justice in London on Monday to challenge the government’s decision against compensation.

They are attempting to force ministers to reconsider their December ruling that rejected payments for women born in the 1950s who were affected by state pension age equalisation.

Campaigners have raised more than £150,000 in recent weeks to fund their High Court challenge.

Labour MPs have told ministers it is “not too late to put it right” by establishing a compensation scheme for women affected by state pension age changes.

Patricia Ferguson, Labour MP for Glasgow West, said: “I cannot say how disappointed I am that it did not happen. But I say gently to the minister that it is not too late to put it right.”

Michelle Scrogham, MP for Barrow and Furness, added: “There is still time to deliver a fair and equitable compensation package for these women. This is the time to right this wrong.”

Ian Byrne, Liverpool West Derby MP, called for a free vote on compensation, saying: “The current position is the wrong position.”

Jonathan Brash, Hartlepool MP, said: “I do continue to believe that options were available to ministers other than simply saying no.”

Brian Leishman, MP for Alloa and Grangemouth, said he was “appalled” by the announcement and remains so.

He added: “The Waspi women are not asking for something that they are not due, all they are asking for is fairness and justice.”

Douglas McAllister, West Dunbartonshire MP, insisted: “For that very welcome apology for maladministration to be in any way meaningful, there must be redress for the injustice.”

Jon Trickett, MP for Normanton and Hemsworth, pledged: “I will back them until they get justice.”

The Parliamentary and Health Service Ombudsman (PHSO) recommended the UK Government pay compensation to women born in the 1950s whose state pension age was raised to equal men’s.

The watchdog suggested payments of up to £2,950 each for affected women. This compensation package could potentially cost £10.5billion to the public purse.

The PHSO concluded that poor communication meant these women had lost the opportunity to properly plan their retirement finances.

The recommendation came after an investigation into how the Department for Work and Pensions communicated the changes.

The Labour government ruled out a compensation package in December 2024 despite previous support from senior ministers.

Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves were among those who backed the Waspi campaign while in opposition.

The decision has created tension within the party, with many Labour MPs now openly criticising their own government’s position.

An e-petition calling for the Government to “fairly compensate” Waspi campaigners collected more than 160,000 signatures.

The petition triggered a Westminster Hall debate where Labour MPs maintained their continued support for the campaigners despite the official government position.

Treasury minister Torsten Bell defended the government’s stance while acknowledging the ombudsman’s work.

He said: “We respect the work of the ombudsman and their independence. In this case, we agree that the letters should have been sent sooner. We have apologised and we will learn the lessons.”

However, he added: “We do not, however, agree with the ombudsman’s approach to injustice or remedy.”

Bell insisted the decision “does not invalidate the role of the ombudsman”, noting: “It is, rightly, rare, but not unprecedented, for a Government to take this view.”

Angela Madden, Waspi chairwoman said: “We do not want to be taking legal action, but we have been forced to due to the Government’s total denial of justice.”

Lawyers for the campaigners argue the Government’s reasons for refusing compensation breach legal principles.

The group’s legal representative Bindmans has sent a letter before action and judicial review papers are being filed. An initial court hearing is expected at a later date.

A Government spokesperson said: “We do not comment on live litigation.”