The ombudsman has recommended compensation for women who were affected by the government's failure to effectively communicate changes to the state pension age.
Publishing the results of its long-awaited investigation into the changes made by the government in 1995, the Parliamentary and Health Service Ombudsman today's report called on the DWP to “do the right thing” and that it must be held to account for its failure.
A 'level 4' range of compensation was recommended, which sits between £1,000 to £2,950. If all women born in the 1950s were compensated this could cost between £3.5 billion and £10.5 billion.
The DWP is not legally obliged to implement the recommendations and the Ombudsman said expects it to be resistant to doing so.
PHSO chief executive Rebecca Hilsenrath, said: "The UK’s national Ombudsman has made a finding of failings by DWP in this case and has ruled that the women affected are owed compensation.
"DWP has clearly indicated that it will refuse to comply. This is unacceptable. The Department must do the right thing and it must be held to account for failure to do so," she said.
Given "significant concerns" that the DWP will fail to act on the findings Hilsenrath said the Ombudsman has "proactively asked parliament to intervene and hold the department to account".
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said the report was "the latest twist of the long running WASPI dispute" but the DWP is not legally obliged to carry out these recommendations.
Morrissey said: "It’s likely we will see this saga continue to rumble on."
As the recommendations could see women compensated up to £2,950, she said this is "a decent amount but far lower than some of the sums reported. With this in mind it is likely that many affected women will continue to feel short changed."