Liz Kendall has faced calls from Labour MPs to reconsider the Government’s decision not to award financial compensation to women affected by state pension age reforms.

Brian Leishman (Alloa and Grangemouth) told the Work and Pensions Secretary that he was “appalled” by the rejection of an independent ombudsman’s suggestion to provide financial redress.

Ms Kendall also dismissed Labour MP Gareth Snell’s suggestion to consider providing compensation to affected women if economic circumstances improve, a call echoed by party colleague Melanie Onn.

Firstly I’d like to say I’m appalled at this announcement

SNP MPs accused the Labour Westminster Government of being “absolutely determined to take every opportunity to screw over” women born in the 1950s, and were among those asking for a Commons vote on the decision.

Ms Kendall replied by suggesting the SNP-led Government in Holyrood could use devolution funds to “do a different approach”, something the SNP has previously disputed it can do.

Plans to increase the state pension age for women between 2010 and 2020 were initially set out in 1995, although this process was speeded up by the coalition government.

Campaigners, led by the Women Against State Pension Inequality (Waspi) group, argued women affected by the changes were required to rethink their retirement plans at relatively short notice and suffered financial hardship.

The Parliamentary and Health Service Ombudsman (PHSO) found that affected women should have had at least 28 months more individual notice of the changes by the Department for Work and Pensions.

The PHSO also suggested that compensation at level four, ranging between £1,000 and £2,950, could be appropriate for each of those affected.

But Ms Kendall said the UK Government does not believe paying financial compensation would be “fair or proportionate” to taxpayers.

Responding in the House of Commons, Labour backbencher Mr Leishman said: “Firstly I’d like to say I’m appalled at this announcement and I have campaigned with Waspi women, as have many parliamentary colleagues, and this is an incredible let down.

“Waspi women, in my opinion, certainly do not need words of disappointment and they certainly do not need hollow statements. What they need is justice. Does the Secretary of State not agree with that?”

Ms Kendall said: “I believe that this is a difficult decision but the right and fair one.”

We don’t agree with the ombudsman’s approach to injustice or to compensation

Mr Snell said the decision would be a “sad moment” for the 4,000 women in his Stoke-on-Trent Central constituency, whom he has campaigned alongside, for “justice and a fair transition”.

He said: “I understand the Secretary of State’s need to balance the budget given what was left by the previous government.

“But could I ask her is this ‘no compensation now because of the economic circumstances we find ourselves in’ or is it a ‘no compensation ever’?

“If we find ourselves in the future in a much better economic state, will she consider readdressing this issue and seeing what compensation might be available for those women that were affected?”

Ms Kendall, in her reply, said: “We don’t agree with the ombudsman’s approach to injustice or to compensation.”

Labour’s Ms Onn (Great Grimsby and Cleethorpes) said letters being sent earlier to women affected by the increasing of the pension age “would have made a difference” to their finances.

She said: “There have undoubtedly been losses for those 1950s-born women, and the honourable member for Stoke central has just given the Government an opportunity to reconsider this at some point in the future. Is she sure that she won’t take that offer?”

Ms Kendall replied: “I know (she) cares passionately about this issue and many other issues related to pensioners. I would just repeat what I said in my statement and indeed what the ombudsman said, which is that there is no direct financial loss for the women.”

SNP MP Kirsty Blackman (Aberdeen North) highlighted 2017 remarks by Anas Sarwar, who took over as Scottish Labour leader in 2021. He said Waspi women “will finally receive the justice they deserve” under his leadership.

Ms Blackman said: “Is the justice they deserve being paid less than their male counterparts throughout their career?

“Is the justice they deserve being sacked or forced to resign from their jobs when they had children?

“Is the justice they deserve the removal of the winter fuel payment?

“Why are the Labour Government absolutely determined to take every opportunity to screw over 1950s-born women?”

Ms Kendall replied: “I am proud of the last Labour government’s record on helping the lowest-paid women pensioners and the improvements that we delivered.

“This is not about that issue, this is about the way the state pension age was communicated, and if (Ms Blackman) wants a different approach then the SNP government in Scotland can do a different approach using the £4.9 billion settlement we have provided, the biggest-ever in the history of devolution.”

Graham Leadbitter, the SNP MP for Moray West, Nairn and Strathspey, said: “I don’t think I’ve seen quite so many glum faces on the (Labour) benches opposite on this, not for the two-child benefit cap, not for the winter fuel payment, but this is beyond the pale.”