Whitehall’s rip off ministry: The DWP dodges paying compensation to millions of pensioners – and the Parliamentary Ombudsman lets it off
You may remember I wrote a long article on a decision taken by the Government to no longer provide an index linked guaranteed minimum pension to millions of pensioners when they new pension came into force. The blog is here.
This decision never debated in Parliament meant the government has got away with not paying out anything from a £1000 to tens of thousands of pounds over the lifetime of their pension, depending on how long they were contracted out by their employer from the old SERPS scheme. The numbers could be as high as 11 million.
The Parliamentary Ombudsman, Robert Behrens, was asked to investigate and came to the conclusion that there had been maladministration and two people shared £1250 compensation. Unlike the row over the 50s and 60s born women who lost out by not being informed by the government over the rise in their pension age, no record exists, as far as I can find out, of the ministry repealing this provision in the 2014 Pensions Act.
And the man responsible for piloting that legislation, Liberal Democrat minister Sir Steve Webb, while publicly championing millions of women pensioners who have been underpaid by the ministry, is strangely silent about this issue which is he must be responsible.
What has happened since has taken morality and standards in Whitehall to new depths and exposed a level of deviousness and dishonesty among civil servants and cowardice in the Parliamentary Ombudsman’s Office that fittingly goes with a government headed by a serial liar.
In September 2019 the Ombudsman gave the ministry three months to sort out this issue. His proposals were quite clear. He asked the ministry to “review and report back on to us on the learning from this investigation, including action being taken to ensure that affected individuals receive appropriate communication from the DWP about their state pensions.
“ln particular, the DWP should ensure that their literature clearly and appropriately references that some individuals, who have large GMPs and reach State Pension Age in the early years of the new State Pension, may be negativity affected by the changes. The DWP should advise individuals to check their circumstances, and should provide instructions for how to do this;”
Sweet nothing happened
So what happened? Sweet nothing. The DWP ignored the deadline and then produced a factsheet which I know from correspondence the Ombudsman clearly felt did not fit the bill. But after one attempt to get this changed the Ombudsman dumped the issue and wimped out of getting the ministry to implement their recommendations.
Their press office told me: “
“We closed this case in November 2020 after working with the Department for Work and Pensions on compliance. At this point we referred the case to the Work and Pensions Select Committee, to oversee DWP’s ongoing work in this area. They will hold the Department to account on the actions it has agreed to take.“
Actually the communication got lost and the committee knew nothing of this to the following April.
The DWP to cover its back claimed when challenged said:
“Working with the Ombudsman, we have now published information on gov.uk about this complex policy area and welcome anyone who wants to know how they have been affected by the policy change to contact us.
“Publishing this factsheet is the final step in the DWP meeting the requirements of the PHSO findings in relation to the way the GMP indexation policy change was communicated.”
It turns out that the Ombudsman agreed to this tardy response.
23 month delay
What finally happened was on August 12 in the middle of the Parliamentary recess, the department 23 months after being asked put out a publication notice amending its guidelines. The link is here.
I can’t imagine a more devious method about informing people and Parliament about this – in the middle of the August holiday. It is designed not to be seen.
Furthermore it does not comply with the recommendations which is why I say it is dishonest. There is no reference as you will see to the Ombudsman’s report, and the fact that people could be entitled to compensation. There is no mechanism for people to apply for the compensation and the notice was not even accompanied by a press release.
The losses are considerable for some people – about £27,000 for some women over the lifetime of their pension – but the information does not spell that out properly. Indeed all the DWP had to do was copy and paste as I have – a table from the Government’s Actuary Department ( at the bottom of this blog) which provided an ” oven ready ” guide to the losses.
Pathetic consultation using ignoramuses
A pathetic consultation process was held by the DWP – where they sought out the most ignorant people about pensions to comment- and only found seven out of 40 who agreed.. We only know this because the Commons Works and Pensions Committee published the details – the ministry itself has not published it.
There are probably millions of people who should at least get £500 in compensation but Therese Coffey, the secretary of state, is determined that nobody should know about it. It does not bode well for the 50s and 60s born women over their pensions compensation. She has already said the Labour Party should compensate the women not the taxpayer.