New betrayal of WASPI women: Report says most victims of botched state pension age hike should only get up to £2,950 in compensation - but ministers won't even commit to that

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A landmark ruling for millions of women hit by state pension age increases sparked outrage last night amid claims they have been 'betrayed'.

Campaigners blasted the 'insulting' compensation proposals that will leave those affected thousands out of pocket, if they get anything at all.

In a long-awaited report, the Parliamentary and Health Service Ombudsman said millions of women were failed by the Government and could be owed up to £10.5 billion in payouts.

Ministers faced demands to ensure that proper compensation is paid to the 'Waspi' (Women Against State Pension Inequality) women born in the 1950s who were not told about changes to their state pension age, and that they get an apology.

The recommendation the women be given between £1,000 and £2,950 fell far short of the £10,000 campaigners were calling for.

But No 10 last night refused to commit to any payouts. The Department for Work and Pensions indicated it would 'refuse to comply' and Labour, whose responsibility it may be after the general election, said time was needed to reflect on the report.

A long awaited report said that WASPI women could be owed up to £10.6billion in payouts

Campaigners said it was time for supportive politicians to 'put their money where their mouth is' with 'a proper compensation package'

The ruling was initially hailed as a major victory for the long-fought Waspi campaign but as details emerged, activists and politicians said the women had been 'betrayed'.

Campaign chairman Angela Madden said it was 'insulting' that the ombudsman's five-year investigation concluded with a suggested compensation of less than £3,000 per person. 

She added: 'They've ruined our lives. It's worth a heck of a lot more than one or two grand. One of the affected women is dying every 13 minutes, and we just cannot afford to wait any longer.

'Waspi women who had their pension delayed by six years without notice lost out on up to £60,000 in state pension income they had reasonably expected to get.'

Campaigners said it was time for supportive politicians to 'put their money where their mouth is' with 'a proper compensation package'.

Peter Aldous, vice-chairman of the state pension inequality for women all-party parliamentary group, said Waspi women 'deserve the dignity of fast compensation'.

Until 2010, women were entitled to receive the state pension from the age of 60, but the Government announced in 1995 that this would increase to 65 between 2010 and 2020 to level the playing field with men.

Up to 3.8 million women born in the 1950s should have received letters informing them about the changes, the ombudsman said. The DWP's failure to notify women early enough means many could not prepare financially for the years they would need to cope without the state pension.

Up to 3.8million women born in the 1950s should have received letters informing them about the change to the state pension age, meaning they could not prepare financially for the years they would need to cope without a pension

The payments will not compensate women for any pension income they lost in the age increase, which they have previously called for. Instead, the ombudsman recommended redress solely for the maladministration at the hands of the DWP.

The department has failed to offer any apology or explanation for its failings. Ms Madden said: 'The DWP's refusal to accept the clear conclusions of this five-year long investigation is simply unbelievable.' Many women lost out when they gave up work at 57, 58 and 59, on the basis they would get a state pension at 60.

Laura Reynolds said she had retired from her job as a police officer when she found out she had to wait an extra six years to get her state pension. By the time she was informed of the change, it was too late to get her old job back. She said: 'It's very frustrating and I feel betrayed. DWP need to put their hands up and say we made a muck-up of the information.'

PHSO chief executive Rebecca Hilsenrath said the DWP had 'clearly indicated that it will refuse to comply' with the ombudsman's order to pay compensation. It has no powers to compel the Government to pay and so took the rare step of asking Parliament to intervene.

Ms Hilsenrath said: 'This is unacceptable. The department must do the right thing and it must be held to account for failure to do so. Parliament now needs to act swiftly, and make sure a compensation scheme is established.'

It is estimated the redress will cost taxpayers between £3.5 billion and £10.5 billion. The Prime Minister's spokesman said the Government would 'consider the ombudsman's report and respond to their recommendations formally in due course'.

A Labour spokesman said only: 'This is a serious report that requires serious consideration.'

Baroness Ros Altmann, a former pensions minister, said the report was 'damning' and highlighted a 'serious failure that caused significant harm to many women'. She added: 'An apology would be a start but will not pay the bills for those plunged into poverty as a result of not knowing their state pension age had been increased.'

Labour MP Rebecca Long-Bailey urged ministers to right the 'historic wrong' as a matter of urgency. 'So many of these women have been plunged into poverty in the years since that outrageous decision. Too many have died waiting for justice.'

Campaign chairman Angela Madden said it was 'insulting' that the ombudsman's five-year investigation concluded with a suggested compensation of less than £3,000 per person

The Waspi group estimates more than 270,000 women affected by the failings have died during the campaign without receiving compensation.

The DWP said: 'We will consider the report and respond in due course, having cooperated fully throughout this investigation. The Government has always been committed to supporting all pensioners in a sustainable way that gives them a dignified retirement whilst also being fair to them and taxpayers.'

It came as sources said Rishi Sunak is set to commit the Tories to protecting the pension triple lock in their manifesto.

They said the flagship policy was a 'certainty' to be included as the Conservatives seek to convince older voters to back them again. The policy guarantees that the state pension will rise in line with either inflation, average earnings or 2.5 per cent, whichever is the highest.

Additional reporting: Lucy Evans.