Burnham shifts stance on Waspi compensation amid cost concerns
Greater Manchester mayor cites affordability limits and political backlash over £10.3bn estimate as he pivots to transport concessions
Andy Burnham, a leading candidate for the Labour leadership and Mayor of Greater Manchester, has formally ruled out providing direct financial compensation to "Waspi women," a group born in the 1950s who claim significant financial losses due to abrupt changes in the state pension age. The decision marks a notable pivot from previous indications that Burnham supported compensation for up to 3.6 million women, a shift driven by intense political scrutiny regarding the potential cost of such a scheme.
A spokeswoman for Burnham clarified to the Financial Times that the case for direct financial compensation is now closed. However, the Labour leadership hopeful remains open to implementing alternative measures to assist the affected generation. These proposed gestures include subsidised transport or early access to concessionary travel, models that would align with existing initiatives in Greater Manchester, provided they remain within strict affordability limits.
The reversal follows a backlash over estimates suggesting a flat-rate compensation scheme could cost the public purse up to £10.3bn. The government has maintained that such a payout would be neither right nor fair, arguing that the majority of women were aware of the pension age increases. This stance contradicts a March 2024 ruling by the parliamentary and health service ombudsman, which suggested that compensation should be paid due to inadequate communication regarding the changes.
Despite the policy shift, Burnham continued to express solidarity with the campaigners during a Makerfield byelection hustings on Wednesday. He criticised the government for reneging on perceived promises, stating he would "stick by the Waspi women because they deserve some recompense for the unfairness." His comments echoed his support for other causes, such as the Hillsborough families, highlighting his focus on long-term political loyalty over immediate policy reversals.
The Waspi campaign involves women who argue they were not properly informed about the acceleration of the state pension age from 60 to 65, and subsequently to 66. Many claim they discovered the changes only after leaving the workforce, leaving them with unaffordable retirement plans. While compensation was not included in the Labour manifesto, the issue has garnered support from numerous Labour MPs in opposition and parties including the Liberal Democrats.
