Rachel Reeves: improving services more important than Waspi women payout

Chancellor Rachel Reeves has stated that enhancing public services is more important than allocating £10 billion in compensation to Waspi women. This comment comes as MPs and advocates express their disappointment over the decision to dismiss the watchdog's suggestion for a uniform compensation plan.

Her remarks followed criticism from activists who claimed that Labour was being hypocritical for pledging to compensate women impacted by the increasing state pension age. The parliamentary ombudsman had suggested that each of the over 3 million affected women should receive between £1,000 and £2,950.

Reeves mentioned that the "costly compensation bill" is hard to justify since the majority of women were aware of the changes in the pension age.

Reeves, who supported the Waspi campaign while in opposition, stated: “I recognize that the women impacted by the alterations to the state pension age are upset about this choice. However, we thoroughly reviewed the ombudsman's recommendations, which indicated that about 90% of women were aware that these changes were on the way.”

"As chancellor, I'm responsible for tracking every dollar of taxpayer funds. Since most people were aware of these changes, I felt that it wouldn't be wise to spend taxpayer money on a costly compensation package for something that the majority understood was taking place."

Rebecca Hilsenrath, the ombudsman, expressed her disapproval of the government's choice to deny compensation. In an interview with Times Radio, she stated, "It's positive that the government acknowledges our role in driving service enhancements. It’s also important to note that most individuals who reach out to us are primarily driven by a desire to see improvements for others."

"However, what we don't anticipate is for a public organization to admit its mistakes and then choose not to rectify the situation for those impacted."

The minister for homelessness, Rushanara Ali, acknowledged that the circumstances were "extremely unfortunate," but noted that the women had been offered an apology. She stated that providing compensation would not be a "reasonable or appropriate" way to utilize public funds.

During an interview on BBC Radio 4's Today program, she stated, "We face a significant challenge in enhancing the living conditions for pensioners in our country. That's why we're prioritizing the protection of the triple lock, which is expected to release £30 billion during this parliamentary session to support pensioners, including women who were born in the 1950s."

"This administration has taken on a significant range of problems; we are actively addressing those difficulties."

Ali explained to Sky News that the £10 billion price tag for the compensation is excessive. He believes it is neither fair nor reasonable in terms of public spending, especially considering that the ombudsman's report indicates that around 90% of those impacted would not have been affected by the delay in the letters.

"However, the truth is that this has been a tough situation for those impacted, and it’s truly unfortunate. We will need to take away important lessons from this."

When asked once more about Labour's commitments to the Waspi women while in opposition—questions that even came from the current Secretary of State for Work and Pensions, Liz Kendall—Ali responded to Sky by saying, “I want to emphasize the importance of learning from past mistakes, especially since this government has acknowledged the delays. However, we need to concentrate on addressing the immediate challenges, particularly when it comes to enhancing the quality of life for pensioners.”