WASPI Update – DWP Agrees to Reconsider Compensation After Deal Reached

After years of tireless campaigning, the Women Against State Pension Inequality (WASPI) group has announced a breakthrough. A deal has reportedly been struck with the government, leading to the cancellation of a planned court hearing and a fresh commitment from ministers to re-evaluate the decision not to offer compensation to millions of women born in the 1950s.

So, what does this mean for the women affected and where does the fight go from here? Let’s break it all down.

Background

The WASPI campaign began after the government raised the state pension age from 60 to 66 for women born in the 1950s. That decision, first implemented without widespread communication, left an estimated 3.8 million women unprepared for the change. Many had made retirement plans based on the previous pension age, only to find out late in the game that they’d have to work years longer than expected.

Deal

A special court hearing had been scheduled for December 9 and 10, where a judge would decide if a full judicial review should go ahead. However, that hearing has now been cancelled. Why? Because a deal was reached between WASPI and the government.

According to campaigners, ministers have agreed to reconsider the issue of compensation within 12 weeks – by February 24 at the latest. More notably, the government has agreed to cover more than half of WASPI’s legal costs so far, signaling that their arguments are being taken seriously this time.

Report

This all stems from a 2023 report by the Parliamentary and Health Service Ombudsman (PHSO), which found that the Department for Work and Pensions (DWP) had committed maladministration by failing to properly notify women about the pension age changes. The report suggested that compensation between £1,000 and £2,950 per woman would be reasonable – a decision that, if applied across the board, could cost the Treasury up to £10.5 billion.

In December 2024, the government accepted the finding of maladministration and apologised for the delay in notification. However, it stopped short of agreeing to compensation, citing the high cost as the main barrier.

Evidence

WASPI’s case was strengthened during legal proceedings by the rediscovery of a 2007 DWP internal evaluation. This document revealed that the department had actually stopped sending automatic pension forecast letters – information many women relied on to plan their retirement. Without those letters, millions were left in the dark about when they would receive their state pension.

This revelation formed a key part of WASPI’s argument: the government not only failed to warn women properly but actively removed one of the few tools they had to understand their pension status.

Response

Angela Madden, chair of the WASPI campaign, didn’t hold back in her reaction. Speaking to the PA News Agency, she declared the government had once again backed down at the last minute. She welcomed the agreement to revisit the decision quickly and thoroughly, but she made it clear that if justice isn’t served this time, the campaign will return to court.

Her message was simple: this fight isn’t over, but for the first time in a while, there’s a real chance of progress.

Statement

In response, the DWP offered a different take. A spokesperson claimed the situation had been “mischaracterised,” saying WASPI had voluntarily withdrawn its judicial review based on the government’s commitment to retake the decision. Still, the DWP confirmed it would re-evaluate the issue as soon as possible.

What’s Next?

The next 12 weeks are crucial. By February 24, the government must come back with a fresh decision on whether compensation will be offered and how it would work. For the women affected, this could mean finally receiving financial recognition for the upheaval they’ve experienced.

But don’t expect WASPI to go quiet. They’ve made it clear that if the government’s new decision doesn’t meet expectations, the legal process will begin again. The deal might have paused the court action – but it hasn’t ended the battle.

So, if you’re one of the millions of women impacted, keep watching. The next few months could finally bring the resolution many have waited years for.

FAQs