Labour compensation package for Waspi women to cost £58bn

Labour has confirmed the full details for its plans to provide pay-outs of up to £31,000 to 1950s born women affected by state pension age changes.

This follows the party's broader manifesto pledge, published last week, to ‘design a system of recompense’ for those affected.

Shadow Chancellor, John McDonnel, stated that the pay-outs were a “historic debt of honour to the women”, and has promised that if the party is elected, the scheme will be delivered within the first full five-year term of government.

The announcement has outlined a five-year scheme to cover those born between 6 April 1950 and 6 April 1960. Those born before 5 April 1955 will receive £100 per week with the amount then tapered down for those born after this.

The party has estimated individual compensation to vary between nil and £31,300, equating to an average payment of £15,380.

The Conservative manifesto has since been published, omitting any reference to the state pension age issues or potential compensation for those affected. This is despite promises in July of this year from party leader, Boris Johnson, to address the historical issues.

Commenting on the move, leader of the Labour party, Jeremy Corbyn stated: “This is about consideration for those who have paid into the system all their lives and made this country what it is, only to be hung out to dry by a government that puts the interests of the richest first.”

Addressing the estimated costings, the Labour party explained: “The compensation scheme is a one-off historical redress for a historical wrong, so the state will be expected to find the money, just as it would do if the government lost a court case, rather than a policy decision.”

The Labour party also pledged to freeze the state pension age at 60, a move which the Institute for Fiscal Studies (IFS) has since estimated would “add a projected £24bn a year to spending by the 2050s”.

IFS associate director, Rowena Crawford, highlighted: “Keeping the state pension age at 66 would be costly, potentially adding around £24 billion per year to the cost of state pensions by the late 2050s. This would be on top of the dramatic, £38 billion per year, increase in spending on state pensions projected even with the planned increase in the SPA to 69.”

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