Women campaigning for pensions compensation have accused the Labour government of an ‘unprecedented’ decision not to abide by the ruling of an ombudsman.

The parliamentary ombudsman ruled earlier this year that 3.6 million women born in the 1950s were justified in claiming they were were not properly informed that the agae at which they could claim their state pension was being extended.

He recommended compensation of between £1,000 and £2,950 to each of those affected.

During a visit to Edinburgh during the general election campaign, Rachel Reeves, now Chancellor, told Daily Business that she had not made any provision in her spending plans to compensate the Waspi campaigners.

Work and Pensions Secretary Liz Kendall today confirmed the government’s view that payments should not be paid.

She said there was evidence that there was “considerable awareness” of the changes to the pension age and there was no evidence of “direct financial loss” resulting from the government’s decision.

“Given the vast majority of women knew the state pension age was increasing the government does not believe that paying a flat rate at a cost of up to £10.5 billion would be a fair and proportionate use of public money,” she said.

Sir Keir Starmer and Ms Reeves both claimed that 90% of women affected by the changes had been aware of them.

However, the Women Against State Pension Inequality (Waspi) campaign described the government’s decision as an “insult” and said the Department for Work and Pensions’ own research showed that nearly 70% of the women in this age range did not know about the change to pension age.

“That is what the Government’s own watchdog found and what she [Ms Reeves] is choosing to ignore,” said the campaign group.

Angela Madden, who chairs the group, said: “The government has today made an unprecedented political choice to ignore the clear recommendations of an independent watchdog.

“This is a bizarre and totally unjustified move which will leave everyone asking what the point of an ombudsman is if ministers can simply ignore their decisions.”

The Waspi campaign had called for payments of at least £10,000 each.

Labour backbenchers were among those angered by the announcement, particularly as a number of senior figures, including the Prime Minister, the Chancellor and Ms Kendall herself had joined campaigners at numerous events over the years.

Brian Leishman, the Labour MP for Alloa and Grangemouth, said the decision was “an incredible letdown” for campaigners. “Waspi women certainly do not need words of disappointment and hollow statements,” he told the Commons.

Other Labour MPs Melanie Onn and Gareth Snell urged Ms Kendall to reconsider. Rachael Maskell, the Labour MP who has led opposition to removing winter fuel payments to ten million pensioners, said the decision was “a significant blow for women who have already had to work additional years”.

Liberal Democrat Scottish affairs spokesperson Christine Jardine MP said:  “Today is a day of shame for the government.

“The new government has turned its back on millions of pension-age women who were wronged through no fault of their own, ignoring the independent Ombudsman’s recommendations, and that is frankly disgraceful.

“For years, Liberal Democrats have pushed the government to fairly compensate WASPI women in line with the Ombudsman’s recommendations. Today’s heartless decision cannot be allowed to stand and we will be pressing ministers to give those affected the fair treatment they deserve.”

The SNP accused Labour of betraying a generation of women. DWP spokesperson Kirsty Blackman said: “This Labour Government announcement is a devastating betrayal of the millions of WASPI women who have spent years campaigning for justice.

“Having been let down for so many years by successive Tory Governments there was a sense that Labour might finally live up to their promise of ‘Change’, but instead Labour has confirmed that they will betray those women and pull yet another shady Westminster trick.”

The changes to the state pension age

Under the 1995 Pensions Act a timetable was drawn up to equalise the age at which men and women could draw their state pension. The plan was to raise the qualifying age for women to 65 and to phase in that change from 2010 to 2020.

But the coalition government of 2010 decided to speed that up. Under the 2011 Pensions Act the new qualifying age of 65 for women was brought forward to 2018.