PensionBee response: Parliamentary and Health Service Ombudsman's decision on WASPI cohort
Becky O’Connor, Director of Public Affairs at PensionBee comments: “It’s reassuring to see the Parliamentary and Health Service Ombudsman acknowledge the necessity of compensation for the WASPI cohort.
The push for the establishment of a compensation scheme, overseen by Parliament, marks a critical step forward in aiding those who suffered financial losses and a loss of ability to make informed financial decisions, due to insufficient communication from the Department for Work and Pensions regarding State Pension age adjustments.
The Department for Work and Pensions holds a substantial responsibility to guarantee transparent communication regarding pension changes. It’s imperative that it is held accountable for any shortcomings in fulfilling this obligation, as these can significantly impact an individual’s retirement outcomes.”
Tim Middleton, Director of Policy and External Affairs, at the PMI said: “It is now 27 years since the changes to women’s State Pension Age were enacted, so it is a matter of grave concern that this dispute remains unresolved. Given that the Parliamentary and Health Service Ombudsman (PHSO) has now ruled in favour of the WASPI women, we would have expected the DWP to respect the ruling and to have agreed to pay compensation. It is a further cause for concern that the DWP has refused to co-operate. Whilst we must all recognise the need to increase State Pension Age, it is important that the Government manages the transition in a manner that is fair and lawful and that those are entitled to compensation are not required to wait any longer.”
Lily Megson, Policy Director at My Pension Expert, said: "The DWP is playing for time that it just doesn't have. It's promising to respond to the Ombudsman’s report in "due course", but if this process drags on then pressure will only grow on the government to offer suitable compensation to those affected.
"Ultimately, this case demonstrates the importance of clearer communication around pension policies. When reforms are introduced, consumers need to be made well aware of what the changes entail and how they will impact their finances. A crucial part of this – one that is so often overlooked – is opening up better pathways so people can seek out financial information, guidance and advice.
"The government may fall back on the excuse that it provides suitable warning over changes to the state pension age, but the truth is that people need much, much more support in understanding the rules that govern their pensions and retirements. Hopefully today's report is the wake-up call the government needs to develop a robust strategy for improving pension engagement and education around financial planning, including the value of independent advice."
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