Campaigners for the Women Against State Pension Inequality (Waspi) say ministers have agreed to a “speedy and thorough” reconsideration of compensation claims.
A hearing, which was slated to take tomorrow, has been cancelled, with judicial review dates next week also being scrapped.
The Government has now pledged to revisit the issue within 12 weeks and cover more than half of Waspi’s legal costs.
Angela Madden, chairwoman of Waspi, said: “Yet again, Waspi has held its nerve and yet again, virtually at the steps of the court, the Government has backed down, this time accepting last year’s decision denying the huge injustice suffered by Waspi women simply does not withstand scrutiny.
“Today’s agreement on speedy and thorough reconsideration is welcome.
“But the Government should be in no doubt that Waspi stands ready to return to court if it yet again fails to do the right thing.”
The Parliamentary and Health Service Ombudsman (PHSO) reported last year that compensation of between £1,000 and £2,950 per person could be appropriate.
In December 2024, the Government accepted the finding of maladministration and apologised for delays in notifying women born in the 1950s.
However, it rejected a blanket compensation scheme, arguing the potential £10.5billion cost was unjustifiable.
Recent court proceedings uncovered a 2007 Department for Work and Pensions review that prompted officials to stop sending automatic pension forecast letters.
Campaigners say this lack of information left many women planning their finances on false assumptions, forcing them to work longer or face hardship.
The judicial review has been paused while ministers reconsider compensation, though campaigners warn the process could resume if the Government fails to act.
Ministers have committed to make their “best endeavours” to reconsider potential compensation within three months’ time or by February 24.
Ms Madden has previously said: “The high stakes should not be forgotten. This is a case of the utmost public interest.
“It impacts not only on millions of Waspi women, but on everyone who trusts the Ombudsman system to resolve their grievances about public authority decisions.”
To cover the “unavoidable additional legal costs”, the group made an appeal for more donations to its crowdfunding page.
As of now the group has raised £269,912 out of its £270,000 stretch.
In March 2024, the PHSO ruled Waspi women were owed compensation by the DWP.
In January 2025, 105 MPs voted in favour of the Government accepting the report’s findings and paying compensation to Waspi women.
Later, in February 2025, the campaign group threatened the Government with legal action if no action was taken.
The group began a crowdfunding page to help pay for its legal costs and filed for a judicial review in March.
Angela Madden, chair of the Waspi campaign has previously criticised the lack of action from Government
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WaspiIn June, the High Court granted Waspi women permission for their case to proceed to a full hearing, after saying their case was “arguable”.
This was set for December 9 and 10, 2025, before the Government said it was not taking further steps.
The latest development will represent renewed hope for the Waspi women in their continued fight for compensation.