WASPI was Labour led. Not true.
Pension equalisation was a 1978 EU Directive. We were a member state. Member states were allowed to set their own timescales for introducing equalisation. Tories came to power the following year in 1979. Thatcher’s governments did nothing to implement the directive.
John Major’s government introduced the Pensions Act 1995 which legislated for equalisation. Its implementation spanned the Major, Blair, Brown and Cameron administrations with the usual revolving door for Secretary of State for Work and Pension (formerly Social Security for both parties. Between 1995 and 2016 we had twelve and repeated failures to got to grips with the DWP maladminstration which the Parliamentary Ombudsman so clearly describes in his report published three years ago. Both parties are to blame but it was the Tory government which refused to consider compensation despite there being a very large excess of funds in the National Insurance Fund (NIF).
In 2022-23, the minimum working balance required in the NIF was 19.4 billion. By year end, there was 72.4 billion in the fund. The surplus was expected to increase by 31 March 2024.
Report 7 December 2023.
The minimum working balance for 2022 to 2023 was estimated at £19.4 billion, being 16.7% of estimated benefit expenditure, as stated in the report on the Social Security Benefits Up-rating Order published by GAD in January 2023. HM Treasury Ministers made provision for a Treasury Grant for 2022 to 2023 of up to 17% estimated benefit payments. The balance of the Fund at 31 March 2023 was £72.7 billion and was above the estimated minimum requirement throughout the year. No Treasury Grant was therefore required in 2022 to 2023.
The report on the Up-rating Order published by GAD in January 2023 projected an increase in the balance of the Fund in the year ended 31 March 2024. It also projected that no Treasury Grant is likely to be required in that year in order to maintain the Fund above the targeted minimum balance of 16.7% of benefit expenditure.
WASPI wasn’t Labour led. It has been a failure of both parties legislatively and administratively, but it was the Tories who had the power to compensate following the Ombudsman report but chose not to. SNP's Mhairi Black, who spoke often and eloquently for WASPIs described it as austerity of choice.
Lib Dems have now tabled an EDM to try to have this debated. I'm hoping that Liz Kendall will take note. There are other pressuing measures e.g. removing the two-child cap on child benefits but important to note that the NIF is ring-fenced. Receipts paid into the NIF are kept separate from all other revenue raised by national taxes and are used only to pay social security benefits such as contributory benefits and the State Pension. It could be argued that compensation would not technically be state pension so couldn't be paid from NIF. We shall see.