Up to 100 Labour MPs could vote against the government’s decision to rule out spending £10bn compensating Waspi women if a vote is held, encapsulating the fury on Keir Starmer’s own benches, the Guardian has been told.
The work and pensions secretary, Liz Kendall, announced on Tuesday there would be no compensation for women born in the 1950s who were not aware of changes to the state pension age, despite a recommendation from the parliamentary ombudsman in March that £1,000 to £2,950 should be paid out to each of the more than 3 million women affected.
The prime minister denied MPs a vote on the issue and told the Commons that taxpayers could not afford the £10.5bn compensation package that had been recommended, as his own MPs accused him of “betrayal” during PMQs on Wednesday.
However, it is understood that the Liberal Democratsintend to press the government to hold a vote. Should that be denied, the party could then consider other means, such as as a backbench debate or opposition day.
One Labour MP called it the party’s “tuition fee moment”, given how many Labour MPs had stood with campaign groups in solidarity with the women hit by the rising state pension age. Many privately feel embarrassed by the move and had thought they were following Labour policy in showing solidarity with the women.
The veteran Labour MP and mother of the house, Diane Abbott, criticised the government during PMQs as she said: “We did promise them that we will give them justice. I understand the issue about the cost, but does the prime minister really understand how let down Waspi women feel today?”
Ian Byrne, who is suspended by Labour and sitting as an independent, told the chamber that the Waspi women were victims of an “injustice done to them at the hands of the state” and asked: “Will the prime minister give members the opportunity to vote on whether they believe Waspi women are owed compensation?”
Starmer did not address the call for a vote, saying instead: “I just set out the factual background and the percentage that knew about the change, and the simple fact of the matter is, in the current economic circumstances, the taxpayer can’t bear the burden of tens of billions of pounds in compensation.”
Downing Street later said it had “no plans” for a vote on the issue, insisting MPs had had “an opportunity to have their say” on Tuesday when the move was formally announced.
Although it was not promised in Labour’s manifesto, Starmer and members of his top team including the chancellor, Rachel Reeves, and Kendall backed the Women Against State Pension Inequality (Waspi) campaign when the party was in opposition.
Reeves told broadcasters early on Wednesday that improving public services was a higher priority than footing an “expensive compensation bill” that could not be justified as most women had said they did know about the pension age changes.
She said: “I understand that women affected by the changes to the state pension age feel disappointed by this decision, but we looked in full at the ombudsman recommendations and they said that around 90% of women did know that these changes were coming.
“And as chancellor, I have to account for every penny of taxpayers’ money spent. And given that the vast majority of people did know about these changes, I didn’t judge that it would be the best use of taxpayers’ money to pay an expensive compensation bill for something that most people knew was happening.”
Rebecca Hilsenrath, the ombudsman, criticised the government’s decision not to offer compensation.
She told Times Radio: “It’s great that the government are saying that our intervention will lead to service improvements and it’s fair to say also that people who come to us, overwhelmingly, are motivated by wanting things to improve for other people.
“But what we don’t expect is for an acknowledgment to be made by a public body that it’s got it wrong but then refuse to make it right for those affected.”
The Conservatives hit out at the “betrayal” of Waspi women, but the shadow business secretary, Andrew Griffith, acknowledged that the Tories might not have offered any compensation either.
A spokesperson for Kemi Badenoch said: “She has not promised to give them compensation but I’m not going to write a budget for four or five years’ time. The key here is about the Labour party and trust and honesty … they told the Waspi women they would get them compensation and then they’ve said no.”
The Scottish Labour leader, Anas Sarwar, said the government’s “blanket no-compensation position is the wrong one” and he was “deeply disappointed by that”.
He added: “I think we could have found a way forward that recognised the difficult public finances, that recognised the difficult inheritance.”
