The WASPI pension row has highlighted important lessons for policy makers

The Ombudsman's study regarding the modification of pension age reveals important insights for the government.

The WASPI campaign is making headlines again due to a new report from the Parliamentary Ombudsman. The report does not address the merits of equalizing the state pension age or the decisions made in 1995 and 2011. Some campaigners are hoping for the restoration of their pension, but this is not within the Ombudsman's jurisdiction. The focus of the report is whether the Department for Work and Pensions (DWP) adequately informed women of the changes, which may have affected their retirement plans.

DWP Study Reveals Public Indifference To Policy Shifts

Policy makers need to avoid the "illusion of similarity" which means assuming that the general public shares their views on a certain topic. Just because policy makers are aware of an issue or why a decision was made does not mean the public is. People lead busy lives and often do not pay attention to policy announcements. As a result, important changes can go unnoticed by the public.

The Ombudsman believed that the government effectively communicated the initial legislation in the mid-1990s, but the DWP's research showed that many people were unaware of the age changes that would occur in the early 2000s. To address this, the department recommended a new campaign with direct mail, but the Ombudsman felt that the delay caused women to lose a couple of years to prepare. Essentially, instead of having 15-25 years to plan, those who were unaware in the mid-1990s only had 3-13 years, which was further worsened when the government accelerated the timetable in 2011 due to austerity measures, raising the age to 66.

This incident brings up concerns about what level of knowledge the government can reasonably anticipate from the public. The government has a responsibility to inform the public, and the important thing to take away from this situation is that they should have taken action after finding out how unaware people were of the change. However, the Ombudsman doesn't mention if citizens have any obligation to be aware of the decisions that the government is making.

"Govt Must Improve Complaint Response"

The Ombudsman criticized the way DWP managed specific complaints. Many of the letters received were form letters, and the government tended to reply in a generic manner by justifying the policy. However, some letters were unique and asked questions about changes in national insurance contributions, but they were not addressed. Responding to correspondence is seen as an unpleasant task that is often delegated to teams that are not in direct contact with the policy-making process. This serves as a reminder that this activity is important and can have real consequences if not taken seriously. Ministers value this activity over their officials, and it could have prevented the Horizon scandal from occurring if they took complaints seriously, recognized patterns, and considered the consequences.

Additionally, false data indicating that the retirement age for women was 60 lingered on a government webpage until the year 2016. Once the issue was detected, it was rectified speedily - however, some individuals may have come across it and felt comforted.

Ombudsman's Costly Outcome May Not Please Anyone

The government is facing a difficult situation. The Ombudsman has found that some people were treated unfairly, causing them stress and loss of control. However, the Ombudsman did not believe that these people suffered any financial losses, so their recommendation for compensation is much lower than what was expected. Furthermore, the government may have to compensate everyone who was affected, including those who knew about the changes. This will cost billions of pounds. Comparatively, this situation is not as severe as the Post Office or NHS scandals, which caused great harm to many people.

Maybe it would be ideal for the authorities to grasp the teachings and proceed without reimbursing damages. Instead, they could use a portion of the money to enhance women's understanding of financial matters and improve their capacity to prepare for retirement. Even though the pension ages for both genders are now the same, women still face significant gaps in earnings after retirement.