Chancellor Rachel Reeves has said most Waspi women knew the state pension age was changing so it was not “the best use of taxpayers’ money to pay an expensive compensation bill”.
The government revealed on Tuesday it would not be compensating millions of women born in the 1950s – called Waspi women – who say they were not given sufficient warning of the state pension age for women being lifted from 60 to 65.
It was due to be phased in over 10 years from 2010, but in 2011 was sped up to be reached by 2018, then rose to the age of 66 in 2020.
Several leading Labour politicians, including Sir Keir Starmer, Rachel Reeves, Work and Pensions Secretary Liz Kendall and Deputy Prime Minister Angela Rayner, said they would get compensation for Waspi women (Women Against State Pension Inequality) before they were in government.
However, they have all now said compensation, which would have cost up to £10.5bn, will not be provided.
Image: Liz Kendall announced on Tuesday Waspi women would not be compensated, despite previously supporting it. Pic: PA
Ms Reeves became the latest, as she said: “I understand that women affected by the changes to the state pension age will be disappointed by the decision but we looked in full at the ombudsman recommendations and they said 90% of women did know these changes were coming.
“As chancellor, I have to account for every penny of taxpayers’ money spent.
“Given the vast majority of people knew these changes were coming, I didn’t judge that it was the best use of taxpayers’ money to pay an expensive compensation bill for something most people knew was happening.”
Image: Rachel Reeves posed with Waspi women in support of their campaign for compensation in 2020. Pic: Waspi/Facebook
Earlier this year, an investigation by the Parliamentary and Health Service Ombudsman (PHSO) found thousands of women may have been adversely impacted by failures to adequately inform people of the change.
The watchdog suggested women should receive compensation of between £1,000 and £2,950 – but the findings were not legally binding.
Following the government’s decision to not compensate the women, the ombudsman criticised the government.
Rebecca Hilsenrath, PHSO chief executive, told Times Radio: “It’s great that the government are saying that our intervention will lead to service improvements and it’s fair to say also that people who come to us, overwhelmingly, are motivated by wanting things to improve for other people.
“But what we don’t expect is for an acknowledgement to be made by a public body that it’s got it wrong but then refuse to make it right for those affected.”
Image: Waspi women said not providing compensation was a ‘bizarre’ move. Pic: PA
Angela Madden, chairwoman of the Waspi campaign group, said refusing to compensate those impacted 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 onto the order paper so justice can be done.”
Conservative Andrew Griffith, shadow business secretary, told Sky News it was “a big issue of betrayal” by the Labour government.
“I’m not sitting here saying we would necessarily have done something about it. That’s fair,” he said.
“But the point is this government has given everybody the impression that they would, and then they’ve come in, and now they’re saying they wouldn’t. That’s a big issue.
“I can understand people, particularly the Waspi women, feeling enormously let down by that.”
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Labour will eliminate unauthorised sewage spillages in 10 years, the environment secretary has told Sky News.
Steve Reed also pledged to halve sewage pollution from water companies by 2030 as he announced £104 billion of private investment to help the government do that.
“Over a decade of national renewal, we’ll be able to eliminate unauthorised sewage spillages,” he said.
“But you have to have staging posts along the way, cutting it in half in five years is a dramatic improvement to the problem getting worse and worse and worse every single year.”
He said the water sector is “absolutely broken” and promised to rebuild it and reform it from “top to bottom”.
His earlier pledge to halve sewage pollution from water companies by 2030 is linked to 2024 levels.
The government said it is the first time ministers have set a clear target to reduce sewage pollution and is part of its efforts to respond to record sewage spills and rising water bills.
Ministers are also aiming to cut phosphorus – which causes harmful algae blooms – in half by 2028.
Image: Environment Secretary Steve Reed. File pic: PA
Mr Reed said families had watched rivers, coastlines and lakes “suffer from record levels of pollution”.
“My pledge to you: the government will halve sewage pollution from water companies by the end of the decade,” he added.
Addressing suggestions wealthier families would be charged more for their water, Mr Reed said there are already “social tariffs” and he does not think more needs to be done, as he pointed out there is help for those struggling to pay water bills.
The announcement comes ahead of the publication of the Independent Water Commission’s landmark review into the sector on Monday morning.
The commission was established by the UK and Welsh governments as part of their joint response to failures in the industry, but ministers have already said they’ll stop short of nationalising water companies.
Mr Reed said he is eagerly awaiting the report’s publication and said he would wait to see what author Sir John Cunliffe says about Ofwat, the water regulator, following suggestions the government is considering scrapping it.
On Friday, the Environment Agency published data which showed serious pollution incidents caused by water firms increased by 60% in England last year, compared with 2023.
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Why sewage outflows are discharging into rivers
Meanwhile, the watchdog has received a record £189m to support hundreds of enforcement officers for inspections and prosecutions.
“One of the largest infrastructure projects in England’s history will clean up our rivers, lakes and seas for good,” Mr Reed said.
But the Conservatives have accused the Labour government of having so far “simply copied previous Conservative government policy”.
“Labour’s water plans must also include credible proposals to improve the water system’s resilience to droughts, without placing an additional burden on bill payers and taxpayers,” shadow environment secretary Victoria Atkins added.
The Rivers Trust says sewage and wastewater discharges have taken place over the weekend, amid thunderstorms in parts of the UK.
Discharges take place to prevent the system from becoming overwhelmed, with storm overflows used to release extra wastewater and rainwater into rivers and seas.
Water company Southern Water said storm releases are part of the way sewage and drainage systems across the world protect homes, schools and hospitals from flooding.