Lord Davies of Brixton has sounded the alarm in the House of Lords, urging the Department for Work and Pensions (DWP) to “recognize the urgency” in addressing the final report of the Parliamentary and Health Services Ombudsman (PHSO). Report calls for compensation for millions of women born in the 1950s who were affected by changes in their State pension age.

He stressed that the current delay “is leaving affected people prey to scammers, who are offering to help them file claims” and stressed that “this problem must be resolved as quickly as possible.” The Labor peer also noted that the Ombudsman “made it clear that these women suffered maladministration and that they are entitled to compensation.”

Baroness Sherlock, Parliamentary Under Secretary of State for DWPclarified the situation in response: “To be absolutely clear, since there has been no response to the report, there is no compensation plan. Anyone who claims to offer it is a scam and no one should touch them; please can that message go out on loud and clear.”

He also assured that the UK Government is “watching the Ombudsman’s findings very closely and will respond as soon as possible.”

Women against State pension Inequality (WASPI) has raised the alarm over a “deeply worrying” rise in fraudulent compensation claim forms circulating online. Last summer, WASPI revealed that several unofficial websites had appeared, falsely promising women affected by the abrupt changes in State pension age at which they could claim up to £2,950 depending on their situation, reports the daily log.

Campaigners have warned that these sites, apparently originating from overseas, dupe women born in the 1950s with the prospect of receiving payments through compensation forms, but are actually heartless scammers targeting older people. The PHSO report published on 21 March clearly stated that “Parliament must urgently identify a mechanism to provide that appropriate remedy” and suggested compensation at level four of its scale, valued between £1,000 and £2,950.

As no official compensation scheme has been declared, any website offering claim assistance is fraudulent and should be reported to Action Fraud. Scottish pensioners misled by these scams are advised to contact Police Scotland on 101.

This same week, the Minister of Pensions, Emma Reynolds, acknowledged that the DWP is “actively considering the costs of establishing a compensation system” for those affected.

In a detailed response to Steve Darling, Liberal Democrat shadow work and pensions spokesperson, Pensions Minister Ms Reynolds clarified on Tuesday that the Department for Work and Pensions (DWP) had identified additional costs when examining the investigation and the Ombudsman’s report. He stated: “As part of our work on the Ombudsman’s investigation and report, we have been considering the costs of establishing a compensation scheme.”

The Minister of Pensions further noted: “The Ombudsman used DWPIn their report published on 21 March 2024, they state that “compensating all women born in the 1950s in tier 4 would involve spending between around £3.5 billion and £10.5 billion of public funds.” “. This estimate excludes administrative costs.”

Ms Reynolds also mentioned: “This Government is giving due and full consideration to all aspects of the Ombudsman’s report.”

He concluded: “Once this work is undertaken, we will be in a position to outline our approach.”

Mr Darling had asked if the DWP had carried out financial modeling for a possible compensation plan following the issues highlighted in the PHSO’s final report.