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The Labour government is facing backlash after refusing to pay compensation to women who were affected by the rise in state pension age.

The recommendation was put forward by the Parliamentary and Health Service Ombudsman (PHSO) after the campaign group Women Against State Pension Inequality (Waspi) said millions of women suffered financially as they were not given sufficient warning to prepare for the later retirement age.

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Prime Minister Sir Keir Starmer said on Tuesday he understood the concerns of Waspi women, but their demands were not affordable.

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No pay out for ‘waspi’ pension women

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, but said she does not believe paying a flat rate to women at a cost of up to £10.5bn would be a fair or proportionate use of taxpayers’ money.

There were shouts of “shame” when Ms Kendall made the announcement in the Commons, with the government also facing a barrage of criticism from MPs, some of which from within the Labour Party.

Work and Pensions Secretary Liz Kendall speaking to the media outside the Department for Work and Pensions in Westminster, London, after she announced that women affected by changes to the state pension age will not receive compensation.
Pic: PA
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Work and Pensions Secretary Liz Kendall. Pic: PA

Who are the Waspi women?

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 to men.

The coalition government under David Cameron and Nick Clegg then sped up the timetable as part of its cost-cutting measures.

In 2011, a new Pensions Act was introduced that not only shortened the timetable to increase the women’s pension age to 65 by two years but also raised the overall pension age to 66 by October 2020 – saving the government around £30bn.

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John Major introduced legislation to even out the pension age in 1995. Pic: PA

Many women complained they weren’t appropriately notified of the changes by the Department for Work and Pensions (DWP) back in 1995, with some only receiving letters about it 14 years after the legislation passed.

Others claimed to only have received a notification the year before they had been expecting to retire, aged 60, while more said they never received any communication from the department at all.

The new British Prime Minister David Cameron (left) with the new Deputy Prime Minister Nick Clegg on the steps of 10 Downing Street in central London, before getting down to the business of running the country.
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David Cameron and Nick Clegg’s coalition focused on saving cash. Pic: PA

Come 2015 a group of women impacted by the situation – namely those born in the 1950s – set up the Waspi campaign.

The group took no issue with plans to equalise the pension age, but they claimed millions of women had suffered financially because of the lack of time they had to plan their retirements.

By October 2018, Waspi had secured a full-scale inquiry into the actions of the DWP by the PHSO.

WASPI women have campaigned over changes to the state pension since 2015. Pic: PA
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Waspi women have campaigned over changes to the state pension since 2015. Pic: PA

It took five years for them to carry out their work, but when they released their report in March 2024, it was damning.

The PHSO said thousands of women might have been impacted by the DWP’s “failure to adequately inform them” about the change to their state pension age, and they ruled compensation was “owed”.

The report suggested the compensation figure per person – based on the sample cases its authors have seen – should fall between £1,000 and £2,950.

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At the time, the ombudsman’s chief executive, Rebecca Hilsenrath, said she had “significant concerns” the DWP will not act on its findings and its recommendations – which are not legally binding – so PHSO had “proactively asked parliament to intervene and hold the department to account”.

‘A day of shame’

Speaking to Ali Fortescue on Sky News’ Politics Hub, Waspi campaigner, Frances Neil, said that group members have been left “angry” and “devastated” by the government’s decision.

“We are taxpayers,” Ms Neil said. “We’ve earned our pensions.”

She said, in combination with the cut to the winter fuel allowance, it’s been a “tough” few months for older people under Labour.

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Waspi campaigner ‘devastated’

Ms Neil called on the MPs – of which she says there are 350 – who’ve supported the campaign to “step up and fight for us”.

Angela Madden, chairwoman of Waspi, added: “The government has today made an unprecedented political choice to ignore the clear recommendations of an independent watchdog which ordered ministers urgently to compensate Waspi women nine months ago.

“This is a bizarre and totally unjustified move which will leave everyone asking what the point of an ombudsman is if ministers can simply ignore their decisions.”

Waspi (Women Against State Pension Inequality) campaigners stage a protest on College Green in Westminster, London, as Chancellor of the Exchequer Rachel Reeves delivers her Budget in the Houses of Parliament. Picture date: Wednesday October 30, 2024.
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Pic: PA

The Liberal Democrats also criticised the decision, calling it a “day of great shame”.

Steve Darling, Lib Dem work and pensions spokesman, said: “The new government has turned its back on millions of pension-age women who were wronged through no fault of their own, ignoring the independent Ombudsman’s recommendations, and that is frankly disgraceful.”

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Who is Shabana Mahmood – Britain’s first ever Muslim woman to become home secretary?

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Who is Shabana Mahmood - Britain's first ever Muslim woman to become home secretary?

Shabana Mahmood has become the first ever Muslim woman in British history to serve as home secretary.

After just over a year as justice secretary, which saw her decide to release some prisoners early to free up jail spaces, she will now be in charge of policing, immigration, and the security services.

The 44-year-old replaced Yvette Cooper, 10 years after she helped run Cooper’s failed Labour leadership campaign, and faces flag-waving anti-immigration protesters and the growing threat of Nigel Farage’s Reform UK.

Raised in Birmingham and Saudi Arabia

Shabana Mahmood was born in Birmingham to parents from the Pakistani-administered region of Azad Kashmir.

Soon after they were born, they moved her and her twin brother to the Saudi Arabian city of Taif, where her father worked as a civil engineer and the family would make regular visits to religious sites in Mecca and Medina.

After seven years, they moved back to Birmingham and her father, still employed as a full-time engineer, bought a corner shop and became chairman of the local Labour Party.

She attended an all-girls grammar school and then Oxford University to study law at Lincoln College, where she was elected Junior Common Room president, with a vote from former Prime Minister Rishi Sunak, who was in the year above her.

After university, she moved to London to train as a lawyer, specialising in professional indemnity for most of her 20s.

On a visit to Solihull Mosque, West Midlands, in August 2024. Pic: PA
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On a visit to Solihull Mosque, West Midlands, in August 2024. Pic: PA

‘My faith is the centre point of my life’

At the age of 29 in 2010, she was elected MP for her home constituency of Birmingham Ladywood, a safe Labour seat, with a majority of just over 9%, which grew to 82.7% at its peak in the snap election of 2017.

Along with Rushanara Ali and Yasmin Qureshi, this made her one of Britain’s first female Muslim MPs.

In an interview with The Times, she said: “My faith is the centre point of my life and it drives me to public service, it drives me in the way that I live my life and I see my life.”

She held several shadow cabinet positions under Ed Miliband’s leadership, including shadow prisons and higher education minister, and shadow financial secretary to the treasury.

Being sworn in as justice secretary in July 2024. Pic: PA
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Being sworn in as justice secretary in July 2024. Pic: PA

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Often described as ‘blue Labour’, Mahmood returned to the backbenches when Jeremy Corbyn took over as party leader in 2015, telling him as she refused a shadow cabinet position: “I’ll be miserable and I’ll make you miserable as well.”

She had chaired her now-predecessor Yvette Cooper’s failed campaign to beat him to the leadership.

During the Corbyn years, she was elected to the Parliamentary Labour Party’s National Executive Committee and as vice chairman of the party’s National Policy Forum.

When Mr Corbyn was replaced by Sir Keir Starmer, Ms Mahmood became national campaign coordinator and was tasked with preparing Labour for the next general election.

During her two-and-a-half years in that job, she is credited with helping Labour win the Batley and Spen by-election and helping Sir Keir recover from Labour’s defeat in Hartlepool – where the Conservatives won for the first time ever in 2021.

On a visit to HMP Bedford in July 2024. Pic: PA
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On a visit to HMP Bedford in July 2024. Pic: PA

At the opening of HMP Millsike in March. Pic: PA
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At the opening of HMP Millsike in March. Pic: PA

Early prison release scheme and views on Gaza

Soon after becoming justice secretary and lord chancellor, Mahmood commissioned a report into the crumbling prison estate.

Carried out by one of her Conservative predecessors, David Gauke, it revealed they were practically full, and triggered a controversial decision to release more than 1,000 inmates early to ease pressure on the system.

The Ministry of Justice were forced to apologise after it emerged 37 prisoners had been released by mistake.

Holding a taser at an event to launch a taser trial in a male prison in Oxfordshire in July. Pic: PA
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Holding a taser at an event to launch a taser trial in a male prison in Oxfordshire in July. Pic: PA

She has also endorsed tougher immigration laws, announcing in August that foreign criminals will be deported after sentencing, and has been critical of their use of human rights lawyers, calling for reform of the European Convention on Human Rights as a result.

Answering questions on Asian grooming gangs, she previously told former Tory minister Michael Gove in The Spectator that there is “still a moment of reckoning” and an “outstanding question of why so many looked the other way”.

Shabana Mahmood shakes hands with US Homeland Security Secretary Kristi Noem on 8 September. Pic Reuters
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Shabana Mahmood shakes hands with US Homeland Security Secretary Kristi Noem on 8 September. Pic Reuters

She has also been vocal on Labour’s stance on Gaza, warning the prime minister that “British Muslims are feeling a very strong sense of pain” and that the government would have to rebuild their trust.

When she was last re-elected in 2024, she suffered a 42% drop in her majority, facing off an independent candidate whose campaign centred around Palestinian rights.

Like her parliamentary neighbour, Labour MP Jess Phillips, she said the election campaign had been “sullied by harassment and intimidation”.

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HSBC, ICBC eye Hong Kong stablecoin licenses under new regime: Report

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HSBC, ICBC eye Hong Kong stablecoin licenses under new regime: Report

HSBC, ICBC eye Hong Kong stablecoin licenses under new regime: Report

HSBC and ICBC reportedly plan to apply for Hong Kong stablecoin licenses, with ICBC and Standard Chartered expected to secure first-round approvals.

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Backpack EU begins operations with CySEC-approved derivatives platform

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Backpack EU begins operations with CySEC-approved derivatives platform

Backpack EU begins operations with CySEC-approved derivatives platform

Backpack EU, owner of the former FTX EU, launches a regulated perpetual futures platform in Europe after settling with the Cyprus regulator and securing a MiFID II license.

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