Compensating Waspi women would ‘burden’ the taxpayer, Sir Keir Starmer says

Published

8 months ago

December 17, 2024

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Sir Keir Starmer has defended a decision not to compensate women affected by changes to their retirement age – saying doing so would “burden” the taxpayer.

The prime minister said he understood the concerns of the Women Against State Pension Inequality – often known as Waspi women – but their demands were not affordable.

He was speaking after Work and Pensions Secretary Liz Kendall issued an apology for a 28-month delay in sending out letters to those born in the 1950s impacted by state pension changes.

However, she said she doesn’t accept that compensation should be paid.

Follow politics latest: Reaction to Waspi decision

Ms Kendall said the “great majority of women knew the state pension age was increasing” and that a state-funded pay-out wouldn’t be “fair or value for taxpayers’ money'”.

The announcement was branded a “day of shame” by the Liberal Democrats, who accused the Labour government of “turning its back on millions of pension-age women who were wronged”.

In the mid-1990s, the government passed a law to raise the retirement age for women over a 10-year period to make it equal with men.

The coalition government then sped up the timetable as part of its cost-cutting measures.

The Waspi group say millions suffered financially as they were not given sufficient warning to prepare for the later retirement age.

Earlier this year, an investigation by the Parliamentary and Health Service Ombudsman (PHSO) found that thousands of women may have been adversely impacted by failures to adequately inform people of the change.

The watchdog suggested that women should receive compensation of between £1,000 and £2,950 – but the findings were not legally binding.

Ms Kendall said paying that would have cost up to £10.5 billion, which is not “fair or proportionate”.

She also said she did not agree that sending letters earlier would have made a difference, saying research given to the Ombudsman showed “only around a quarter of people who are sent unsolicited letters actually remember receiving them or reading them“.

However she did accept there was maladministration in communicating the changes and vowed to “learn all the lessons” so it did not happen again.

Speaking later to journalists, Ms Kendall said “real and concrete actions” were coming out of the report, including a “detailed action plan to make sure those sorts of delays never happen again”.

Speaking to reporters after the announcement, Sir Keir said: “I do understand, of course, the concern of the Waspi women. But also I have to take into account whether it’s right at the moment to impose a further burden on the taxpayer, which is what it would be.”

The Waspi campaign group hit out at the decision on X, reminding Ms Kendall that she had previously called for a “fair solution for all affected”.

Angela Madden, chairwoman of Waspi, said refusing to compensate them was a “bizarre and totally unjustified move”.

She added: “An overwhelming majority of MPs back Waspi’s calls for fair compensation and all options remain on the table. Parliament must now seek an alternative mechanism to force this issue on to the order paper so justice can be done.”

This may be as big a political blunder as chancellor’s winter fuel cut

Jon Craig

Chief political correspondent

@joncraig

When Liz Kendall declared in the Commons there’ll be no compensation for the so-called WASPI women, there were shouts of “shame!” from MPs.

And no wonder. Could this be as big a political blunder as Rachel Reeves axing winter fuel payments for pensioners? Potentially, yes, given the furious backlash already.

Yes, compensation was promised by former Labour leader Jeremy Corbyn and his shadow chancellor John McDonnell in the run-up to the December 2019 general election.

Mr McDonnell promised a £58 billion compensation scheme designed to end a “historic injustice” and said a “debt of honour” was owed to women born in the 1950s.

And yes, Sir Keir Starmer fought this year’s election as a changed Labour Party. And no, there was no repeat of the Corbyn-McDonnell pledge in this year’s election manifesto.

But as recently as 2022 the prime minister told a caller in a radio phone-in: “This is a real injustice. We need to something about it.”

In 2019, when she was in Mr Corbyn’s shadow cabinet, Angela Rayner said the Tory government “stole this money” from women born in the 1950s and Labour would “right that injustice”.

But not only that, Liz Kendall herself attended a WASPI campaign event in 2019 and said: “This injustice can’t go on. I have been a longstanding supporter of the WASPI campaign…”

No surprise then, that many of Labour’s newly-elected MPs now feel betrayed. “It feels a bit like we assembled this enormous coalition at the election and now we’re just intent to taking an axe to it piece by piece,” one new Labour MP told Sky News.

If it was an injustice in 2019 and in 2022, surely it’s still an injustice? Should other groups battling against injustice – like sub-postmasters and infected blood victims – be worried now?

Labour MPs were among those who criticised the decision in the House of Commons.

Gareth Snell, for Stoke-on-Trent Central, said today was a “sad moment” and asked the government to re-think its position if the economy improves.

Brian Leishman, for Alloa and Grangemouth, said he was “appalled” at the refusal to compensate the women, calling it “an incredible let down”.

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Tesla approves $29bn share award to Elon Musk

Published

21 hours ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

Money latest: Ryanair check-in change this autumn

He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

Published

21 hours ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

2 days ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”