Money saving expert Martin Lewis has highlighted gaps in the Chancellor’s Budget, warning that pivotal issues were noticeably absent – including WASPI. The 52-year-old shared his insights to The Martin Lewis Podcast soon after the Budget took place, which saw Rachel Reeves divulge the Government’s future spending plans.
“No news on mortgage prisoners,” he said within his summary. “…No news on WASPI compensation either, so quite a few things that I was hoping for that aren’t in the Budget.” But what exactly is Martin referring to?
Below, The Express has given a rundown on these two missing issues.
1. ‘Mortgage prisoners’
The plight of ‘mortgage prisoners’ has been consistently flagged up by Martin Lewis’ MoneySavingExpert (MSE). These individuals are mostly homeowners who secured their mortgages pre-2008, taking advantage of the more lax lending landscape of the time.
However, since then, they’ve become ensnared in costly mortgage agreements as the affordability criteria have considerably tightened post-crash. In March, the site’s financial experts explained: “After the financial crash in 2008, mortgage lending rules were tightened.
“Suddenly, homeowners who successfully applied for and were granted mortgages under the old rules, now didn’t pass under the new ones. So when they tried to switch to cheaper deals with new lenders, the new rules prevented them from doing so. As a result, many are stuck on uncompetitive rates and are being told: ‘You can’t afford a cheaper deal’.”
If you’re among those trapped, MSE suggests looking for a cheaper deal with your new or existing lender. This year, NatWest, Halifax and Santander were among those which help mortgage prisoners the most, according to the site.
But Martin has persistently urged the Government to take more action on this, having donated to research surrounding the topic at the London School of Economics. In 2023, he explained: “The Government has a moral and financial responsibility to mitigate some of the damage done. Mortgage prisoners are the forgotten victims of the financial crash. The banks were bailed out at the expense of these borrowers.”
2. WASPI compensation
WASPI – or Women Against State Pension Inequality – is a campaign fighting for ‘justice for all women born in the 1950s (on or after 6th April 1950 to 5th April 1960) affected by the changes to the State Pension Age (SPA).’
Women fighting in this campaign claim they weren’t correctly informed that their State Pension age would increase. Consequently, scores of them had their retirement dreams dashed when the 1995 Conservative Government escalated the State Pension age for women from 60 to 65, spanning between April 2010 and 2020.
According to the Mirror, a spokesperson for WASPI previously said: “Women were given as little as one year’s notice of up to a six-year increase to their State Pension age, compared to men who received six year’s notice of a one-year rise to [theirs]. Many women report receiving no letter ever and others say letters were sent to the wrong address despite notifying the DWP of the address change.”
The Parliamentary and Health Service Ombudsman (PHSO) kickstarted an independent investigation five years ago. WASPI campaigners are still waiting for the outcome.
