Pension Justice stalemate: WASPI and Backto60 step up rival campaigns just as the new Chancellor Jeremy Hunt plans new spending cuts

Jeremy Hunt, the new chancellor of the Exchequer

And a Parliamentary Petition is laid to change another pension injustice affecting millions

The chaotic and collapsing government of Liz Truss is facing rival demands to settle the long running dispute affecting 3.6 million 1950s born women demanding compensation for maladministration and inequality over the six year delay in paying their pension.

Ian Byrne, the Labour MP for Liverpool, West Derby, has tabled a motion supporting Backto60’s demand for full restitution of the lost money – up to £50,000 in some cases- payable through a special temporary Parliamentary measure – to avoid changing the 1995 Pensions Act which set the higher retirement age for women.

Ian Byrne MP

Some 35 MPs have backed him including the former Labour shadow chancellor, John McDonnell, who got Labour to back a £58 billion compensation package in the 2019 election campaign; former Labour leader, Jeremy Corbyn and host of other Labour MPs, including Ian Lavery, Tony Lloyd, Mike Amesbury, Richard Burgon and Clive Lewis. It is also supported by Alison Thewlis, the SNP Treasury spokesperson and Chris Stephens, SNP Fair Work and Employment spokesman. Two members of the Democratic Unionist Party, Jim Shannon and Gregory Campbell, also backed the motion. The full list is here.

Chloe Smith, work and pensions secretary

The initiative from Waspi involves getting its members to send a template letter to their MP asking them to back their version of compensation for 50s women. For avoidance of any doubt here is the full text which would be sent to Chloe Smith, the new work and pensions secretary.

Chloe Smith MP

Secretary of State

Department for Work and Pensions

Caxton House

Tothill St

London, SW1H 9NA

XX October 2022

Congratulations on your appointment as Secretary of State!

I write in the hope that you may be able to ‘reset’ the government’s relationship with the Women Against State Pension Inequality (WASPI) campaign, whom I met during the Summer Recess.

Parliamentary answers (see UIN14559) confirm that no Minister in your department has met the campaign since 2016, which is something I am hoping that you and colleagues will be prepared to put right.

As you will know, last year the Parliamentary and Health Service Ombudsman has found that the Department was guilty of maladministration, in failing to communicate significant changes to the State Pension Age, which were legislated for in 1995.  Specifically, the PHSO has concluded “the opportunity that additional notice would have given them to adjust their retirement plans was lost…DWP failed to take adequate account of the need for targeted and individually tailored information… Despite having identified there was more it could do, it failed to provide the public with as full information as possible.

While the PHSO is continuing to investigate the harm caused to women born in the 1950s, as a result of this maladministration, CEO Amanda Amroliwala has also made clear that the government need not wait for further reports before making an offer of compensation.  In a letter to our parliamentary colleague, Andrew Gwynne, she said, “We must now consider the impact of these failings on the women affected and what recommendations may be needed to remedy any associated injustice. We have suggested to the Department for Work and Pensions that they consider being proactive in this respect”.

Meanwhile, WASPI have recently commissioned research which establishes that, by the end of this year, 220,000 women will have died waiting for compensation since their campaign began in 2015.  Sadly, another woman dies every 14 minutes.

I have been struck during my conversations with the campaigners that they are therefore extremely pragmatic about achieving a resolution quickly.  They are not looking for a long fight with the government, preferring to accept a fair, fast one-off sum for those whose retirements have been devastated by mistakes made at DWP.  Specifically, they are not looking to receive ‘lost’ pension amounts, but rather to be compensated for the maladministration at DWP, which caused them to take decisions they might not otherwise have taken, had they been given proper notice of changes to the law.  Quite sensibly, they are suggesting higher levels of compensation for those given the shortest notice of the longest delay to receipt of their State Pension.

They have been through four stages of complaint at DWP and now face two further stages of the PHSO process.  All the while more of the women affected die waiting, so they are keen to see the proactivity suggested by the PHSO from your department.

Would you prepared to meet with me and with Angela Madden, the Chair of the campaign, together – both so that you can understand the (surprisingly reasonable and pragmatic) position of the campaign, and that they can hear directly from you?

While both they and I recognise that you could not make immediate commitments in any such meeting, I do believe it would be helpful to open a dialogue now rather than have the group getting more and more frustrated that government will not talk to them.  The PHSO’s ongoing investigation is not a reason to postpone discussion, since the substance of maladministration has already been confirmed.

At some point, government (of whichever political stripe) is going to be required by the Ombudsman to make an offer of compensation, so it makes sense to begin the conversation now rather than brooking further delay, during which time – sadly – more and more of the affected women will pass away.

WASPI want compensation for maladministration and nothing for restitution

The letter is a massive reduction on the demands made by the MPs. For a start they want NO rather than FULL restitution for the up to £50,000 lost by 3.6million pensioners. Instead they want an unspecified payment before the Ombudsman decides what level of compensation for maladministration. There is no mention of the £10,000 to £20,000 a head compensation promised by Angela Madden to the 50 people attending the Labour Party fringe meeting last month.

There also is a misconception that the Department for Work and Pensions is required by the Ombudsman to meet them after he has issued his report. This is not true the Ombudsman has no power to require anybody to follow his decisions – as has been shown ( see below) in another case where millions of pensioners have been cheated out of a Guaranteed Minimum Pension also promised in the 1990s.

Finally the letter speaking for the 3.6 million people say they are “reasonable and extremely pragmatic people” quite happy to accept a fast buck settlement of few quid to end this dispute. This is not reflected in the comments I receive on this site.. People are livid, angry, despairing of politicians and feel deliberately cheated by the Establishment of what they see rightly as their dues. They are fed up about being thought to be a soft touch just because they are older women. They are prepared to take on the government and refuse to vote for any politician determined to deprive them of their lost pensions.

New petition on Guaranteed Minimum Pensions

Meanwhile a Parliamentary petition has been tabled by Chris Thompson, a retired pensions expert, to restore indexation for a guaranteed minimum state pension for people outside the public sector.

“I want the Government to change the law to reinstate uprating of state pensions in respect of contracted out occupational pensions known as Guaranteed Minimum Pensions (GMP).

“I believe it is not fair that the DWP ceased to uprate state pensions in respect of certain pension entitlements when the new state pension was introduced. I believe this with done without adequate consultation or notice, and should be reversed. “Sign this petition

This followed a victory for two people after they complained of maladministration ( sounds familiar) by the DWP in not informing them of the change depriving them of indexation when the new pension came into force. The Ombudsman laid down what the DWP should to inform people of their rights, but the DWP has not followed this through properly and refused to engaged with anyone. Over a lifetime this could be worth thousands of pounds of lost pensions – and I urge 50swomen to sign this to put more pressure on the DWP. You might be entitled to extra compensation as well as your claim for your lost pensions.

Finally I don’t like to be the harbinger of bad news -but the total disaster of Liz Truss’s government – means we are now going to be faced with a further two years of austerity after she wrecked the British economy.

Sadly this will mean that the government will be extremely reluctant to compensate other people on top of subsidising people’s energy bills and introducing measures to balance the books. I see Angela Madden has managed to get a meeting with former Tory leadership candidate Penny Mordaunt, the current leader of the Commons, who appears to be involved in a plot to topple Truss with Rishi Sunak. The trouble is it is the DWP who are the ministry who will decide this – and they have just been asked by Jeremy Hunt to impose more cuts on top of long term savings to sack 91,000 civil servants across Whitehall. I can’t see them having any interest in settling this at the moment.

One bright spot will be a report by Australian judge Jocelynne Scutt is expected to pull together all the injustices in this case following the tribunal earlier this year. The report is imminent.

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DWP dumps on disabled claimants by rejecting plans to give them more say and rights over benefits

Chloe Smith, Minister for Disabled People, Health and Work

The Department for Work and Pensions has turned down some innovative proposals from its own advisory body, the Social Security Advisory Committee, to give disabled people more say in the benefit system.

The response to a report from the committee made over a year ago came in the last few days of the Parliament with an explanation from Chloe Smith, the minister.

Not only does her reply do an injustice to disabled people but heavily reflects the corporate approach inside the ministry which in my view, does not treat people claiming benefits as independent human beings who might have something to contribute to the running of the service.

Having a protocol for engagement is ” bureaucratic “

Typical of today’s government responses Chloe Smith cherry picks parts of the report which fit in with DWP’s grand corporate plan to digitalise everything – while ignoring other more challenging proposals to help the disabled.

The SSAC report- full details here – suggests the government should formalise engagement procedures with disabled people – giving them a chance to put their own views into how the benefit system could help them. The government rejects this as ” bureaucratic” while claiming it engages in meaningful discussions. The problem with this is that the government chooses what it wants to consult about and ignores issues it doesn’t.

The second recommendation was that the ministry should provide regular updates on its engagement with disabled people. The ministry rejects this on the grounds it already provides details of quarterly ministerial meetings with who attended under existing transparency rules ( I wonder how many disabled people search this out ). It certainly doesn’t want this extended to officials using the rather curious argument that “we need to recognise that some stakeholders or users may not want to be identified as having worked with the Department and we do not want to compromise open and honest dialogue.”

Really? Given the ministry publish the people who attend ministerial meetings on the disabled this seems rather contradictory.

A panel for disabled people ” not value for money”

The third rejected recommendation is a proposal to recruit some representative disabled people who experience the benefit system to act as a panel to raise issues. The Department responded:

 “Creating and maintaining a representative panel across all disability benefits is unlikely to offer value for money as it would require continuous oversight and recruitment. Given the wide range of policies the Department is responsible for, which will be of interest to different groups in society, we think having the flexibility to tailor our engagement will lead to more meaningful insight than using a standing panel. Any findings from such a panel would only be indicative and could not be used for robust evaluation to assess the impact or effect of any single policy intervention.”

The ministry did accept the fourth recommendation – the use of accessible technology – which would allow video interviews between staff and claimants – and is being trialled for Universal Credit . But that fits in with its modernisation plan.

It went on to reject a proposal to include a clause insisting on how private contractors – which do a lot of work for the DWP in assessments and interviews for disabled people – should engage with disabled people. This is a controversial issue – the Northern Ireland Ombudsman is currently investigating allegations of bad practice by contractors assessing people for benefits. But the department claims to include it would be subject to legal challenge by contractors during the bidding process for the work. Frankly if the private firms don’t want this if they want to do this type of work, it suggests to me their motives for doing the job are questionable.

The ministry also accepted a recommendation that its services should be more accessible for disabled people – and listed achievements in that area – again in line with their corporate plan.

Finally the ministry half accepted a recommendation for more leadership inside the department to enable disabled people and other claimants to have greater input but rejected appointing a non executive director to co-ordinate such a process. Instead it said it should be Chloe Smith, the present minister should do this as part of her job.

Minister’s complacent response

The covering letter from the minister said: “I am pleased to see the progress we have made in engaging with disabled people recognised in the Committee’s report. I share the Committee’s view on the importance of keeping the voices of disabled people at the heart of health and disability policy development and delivery. However, I do not agree with several of the Committee’s recommendations because I believe that we can achieve the outcomes of sustained, meaningful engagement with disabled people in ways other than those identified in the report.”

In my view the report reflects the current complacency and culture in the ministry – shown by the lack of engagement in the past over the raising of the pension age for 1950s women and the management’s top down attitude in not wanting to engage directly with pensioners, mainly women, who have been underpaid their pensions.

Incidently, in researching Chloe Smith for this article I came across a rather extraordinary story about her marriage partner, Sandy MacFadzean, a financial consultant. In September 2020 he dismissed those suffering from Covid 19 as having a ” mental illness”. He held such strong views that he went on a march run by Piers Corbyn when gatherings of more than 30 people were banned and retweeted a poster for it on his now closed Twitter account condemning social distancing, wearing face masks and opposing the mass vaccination of the population. The story was picked up by the Eastern Daily Press.

The minister defended his right to freedom of speech but said she disagreed with his stance. The discussions in their household must have been fascinating during the long pandemic.

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