New figures show women born in the 1950s will lose up to £770 a year each due to the government’s decision to hit pause on an increase traditionally linked to inflation, earnings growth and 2.5%
Retired women are to be £3billion worse off as a result of the Government’s decision to suspend the triple lock this year.
New figures show women born in the 1950s will lose up to £770 a year each due to the government’s decision to hit pause on an increase traditionally linked to inflation, earnings growth and 2.5%.
Around 3.8million women have lost up to six years in pension payments due to their retirement age rising from 60 to 66.
The campaign group Women Against State Pension Inequality WASPI has been fighting against this inequality for decades.
Now research by the Lib Dems has shown the women will also lose a total of £2,924,480,000 due to the Chancellor’s decision to break the Tory election manifesto’s triple lock pledge.
Figures showed so-called WASPI women on the basic state pension are losing £590.20 per year each. Those on the new state pension are missing out on £769.60 per year.
The total was based on the shortfall between this year’s 3.1% state pension rise and the national earnings increase of around 8%.
Lib Dem work and pensions spokeswoman Wendy Chamberlain MP said: “This is a double blow for WASPI women and only adds insult to injury after they have been ignored for years.
“They are missing out on hundreds of pounds a year at a time when bills are soaring, whilst still seeking justice for changes to the state pension that left them out of pocket.
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“We are demanding a fair increase to the state pension, so that it matches rising living costs and provides a fair deal for WASPI women.”
The Lib Dems are calling for pensions to be uprated by the forecast inflation rate.
The party is also pledging to compensate WASPI women in line with a level set by the Pensions Ombudsman once it has completed its investigation.
A spokeswoman for the WASPI campaign said: “Women born in the 1950s have already been affected by huge losses to their retirement income by their state pension age being increased by up to six years, without adequate notice, which the Ombudsman found to be maladministration by the DWP.”
She added: “The scrapping of the triple lock for those women who have already reached their new state pension age will impoverish them further.”
A Department for Work and Pensions (DWP) spokesman said the triple lock, which guarantees the state pension will rise by the highest figure out of inflation, average wage growth or 2.5 per cent, will return next April.
“The full yearly amount of the basic state pension is now over £2,300 higher than in 2010 and the Government remains committed to implementing the triple lock in the usual way for the remainder of the Parliament and will return next year.
A spokesman added: “We recognise the pressures people are facing with the cost of living, which is why we’re providing support worth £22billion across the next financial year.” Officials insist the Treasury suspended the triple-lock mechanism for one year only due to “distortions” in the earnings rise caused by the end of the Covid furlough scheme.
The story behind the Waspi generation
Many women born in the 1950s were initially told they would retire at the age of 60 – five years earlier than men, until the government U-turned in the name of equal rights in 1995.
That year, the Department for Work and Pensions raised the pension age to 65, the same age as men.
But it gave women a 15-year reprieve, and then from 2010 began to start raising the age gradually.
In 2011, the government sped up the process – and dropped a bombshell on women born in 1953-4, who suddenly learnt they would have to wait longer than expected to retire.
This meant women born before 6 April 1950 still could retire at 60, but women born a year later would have to wait longer, and those born in the mid-50s have had to wait until their 66th birthday to claim the state pension.
Last summer, the Parliamentary Ombudsman ruled that government officials were “too slow” in informing many women of the rising state pension age.
The decision was hailed as a significant victory for the WASPI campaign which called on the government to compensate women affected.
However the Ombudsman does not have any powers to issue refunds on pensions and cannot recommend that people receive state pensions earlier than permitted under current law.