Andy Burnham, the Mayor of Greater Manchester and a potential future Labour leadership contender, has clarified his position on compensation for women affected by state pension age changes, commonly known as 'WASPI women'. Mr Burnham has now stated he will not back direct financial compensation, a shift from previous indications of support for recompense.
The move comes after significant discussion regarding the substantial cost of a compensation scheme. A spokesperson for Mr Burnham confirmed that while he considers the case for financial compensation closed, he remains open to exploring alternative forms of support. These could include 'other gestures' such as subsidised transport, an approach he has already implemented in Greater Manchester by offering early access to concessionary travel for women in the city-region affected by the changes.
This development follows a ruling in March 2024 by the Parliamentary and Health Service Ombudsman, which suggested that WASPI women should be compensated. However, the government had previously stated that it would not offer compensation, citing that a flat-rate scheme for all women born in the 1950s could cost up to £10.3 billion. Ministers argued such a payout would be disproportionate, given that many women were reportedly aware of the pension age changes.
Campaigners for the Women Against State Pension Inequality (WASPI) group argue that millions of women born in the 1950s were not adequately informed about the accelerated increase in the state pension age from 60 to 65, and then to 66. They contend that this lack of communication left many with insufficient time to adjust their retirement plans, leading to significant financial hardship for some who discovered the changes only after leaving employment.
While the prospect of direct compensation appears to be off the table from Mr Burnham's perspective, his openness to other forms of support signals a continued acknowledgement of the impact on this generation. The discussion around affordable solutions for those affected by pension age changes is likely to persist, particularly given the ongoing cost of living pressures faced by many UK households.