DWP 'considering' costs of compensation for women affected by changes to State Pension age

dailyrecord.co.uk:

Pensions Minister Emma Reynolds has confirmed that the Department for Work and Pensions (DWP) have been “considering the costs of setting up a compensation scheme” for women born in the 1950s affected by changes to their State Pension age.The Parliamentary and Health Service Ombudsman’s (PHSO) final report, published on March 21, stated that “Parliament must urgently identify a mechanism for providing that appropriate remedy” and recommended compensation equivalent to level four on its banding scale, which is worth between £1,000 and £2,950.In a written response to Steve Darling, the Liberal Democrat shadow work and pensions spokesperson on Tuesday, Ms Retnolds explained that as part of the DWP’s “work on the Ombudsman’s investigation and report” it had found that the PHSO’s estimate to compensate all women at level four - between around £3.5billion and £10.5bn - did not take administrative costs into account.The Pensions Minister said: “As part of our work on the Ombudsman’s investigation and report, we have been considering the costs of setting up a compensation scheme.“The Ombudsman used DWP’s broad estimates in their report published 21 March 2024, stating that ‘Compensating all women born in the 1950s at the level 4 range would involve spending between around £3.5 billion and £10.5 billion of public funds’.

This estimate excludes administration costs.”Ms Reynolds added: “This government is giving its full and proper consideration to all areas of the Ombudsman's report.“Once this work has been undertaken, we will be in a position to outline our approach.”Mr Darling had asked DWP if it had “undertaken financial modelling for a potential compensation scheme for issues raised” in the PHSO’s final report.The WASPI